South Africans who are in the process of emigrating may be prevented from leaving the country – or worse – if their tax clearance application is denied by the South African Revenue Service (SARS).
Recent changes to expatriate tax procedures and SARS’ dramatically improved auditing capabilities mean the exit process is more stringent than ever, said specialist firm Tax Consulting South Africa.
“Local tax laws require every South African to declare and pay taxes on their worldwide income, even if they moved to another country years ago. SARS does not tax the first R1.25 million of these earning,” they say. “However, financial emigration provides a legal escape from this obligation. That said, this method should never be pursued without the guidance of a reputable expatriate tax specialist.”
