1. LEAVING ON A JET PLANE Emigrating from SA 26 October 2017

2. The process Collection of documentation MP336(b)
Emigration tax clearance
Section 9H?
Application and approval
Emigrant banking accounts
Emigrating from SA

3. Definition
“Emigrant means a South African resident who is leaving or has left South Africa to take up permanent residence or has been granted permanent residence in any country outside of the Common Monetary Area.”
Emigrating from SA

4. Definition
“Resident temporarily abroad means any resident who has departed from South Africa to any country outside the Common Monetary Area with no intention of taking up permanent residence or who has not been granted permanent residence in another country, excluding those residents who are abroad on holiday or business travel.”
Emigrating from SA

5. Supporting documents – MP336(b)
Proof that may reside elsewhere
SA assets only
Prior special applications
Market values
Original documents to be lodged with the Authorised Dealer
Title deeds
Share certificates
Interest in Trust
Emigrating from SA

6. Purpose: All about the export of capital Own Asset Trust
Interest in Trusts
Classification
Purpose: All about the export of capital
Own Asset Trust
Created prior to emigration
Created after emigration
Third Party Funded Trust
Created three years prior to emigration
Funding analysis
Emigrating from SA

7. Emigration tax clearance
E-filing process
Assets and liabilities for past 3 years
9H calculation
Beware of linked entities
Emigrating from SA

8. Section 9H exit charge Section 9H (2) provides:
“Where a person (other than a company) that is a resident ceases during any year of assessment of that person to be a resident, …(b) that year of assessment must be deemed to have ended on the date immediately before the day on which that person so ceases to be a resident, and (c) the next succeeding year of assessment of that person must be deemed to have commenced on the day on which that person so ceases to be a resident”
So two things happen
Year of assessment comes to an end
Deemed disposal
Exemptions
Immovable property in SA
Assets with PE in SA
Equity instruments – employment (section 8C)
Emigrating from SA

9. Change in tax residence
Ideal to plan that emigration date links up with date that cease tax residency
Resident in SA defined:
Ordinarily resident
Physical presence test
Present more than 91 days AND
Present more than 91 days in previous 5 years AND
915 days in aggregate during previous 5 years.
Split tax year created by 9H:
Year 1: 1 March 2017 – Day before date of departure
Year 2: Date of departure – 28 February 2018
End of November planning
Emigrating from SA

10. The waiting game Application and approval from FinSurv
Beware the limbo phase
R10m FIA before starting with the process
Emigrating from SA

11. Emigrant banking Blocked account Pre-emigration income
Proceeds from blocked assets
Not transactional account
Private bank account
Also blocked account / can be the same
Card payments
EFT payments
Non-resident transferable account
Funds from abroad
Freely use
Emigrating from SA

12. Foreign National vs Immigrant
Returning Emigrants
Foreign National vs Immigrant
Valuation of assets when becoming resident again
Planning opportunity: resettle on offshore structure prior to becoming SA resident
Emigrating from SA

13. Michél Ungerer E: michel.ungerer@maitlandgroup.com T: +27 21 681 8611
Emigrating from SA

14. www.maitlandgroup.com www.linkedin.com/company/maitland
Emigrating from SA