YOUR MONEY: How to access your local retirement savings after emigrating

Question:

I emigrated from South Africa in August 2021. I am recognised by the South African Revenue Service (Sars) as a tax nonresident with effect from my date of emigration. 

I would like to access my retirement savings and I believe I have to wait until the third anniversary of my emigration before I can do so. 

Is the tax upon withdrawal calculated with reference to the fund value as at my emigration date with interest charged to withdrawal date, or is it calculated based on the fund value as at withdrawal date? 

Also, once the withdrawal is complete, may the funds stay in South Africa and be used to buy property or otherwise invest, or must the funds be expatriated? 

— Richard 

Answer:

As you know, with effect from March 1 2021, on the basis that you have emigrated, you will require a tax clearance certificate for emigration from Sars, and further to this, you will then be able to access your retirement annuity funds once you have been a nonresident of South Africa for an uninterrupted period of three years, from March 1 2021.

The tax upon withdrawal is calculated on the fund value as at withdrawal date, and the taxes are calculated according to the following withdrawal benefit table; this may change slightly if the withdrawal is in another tax year — please see the Sars table below.

With regards to your last question, the funds may stay in South Africa to be used to purchase property or invest as you prefer.

Kim White, master tax practitioner (SA), KCE Consulting 

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