Why You Need Emigration Tax Clearance and Where to Get Help
Whether you are already out of the country or want to emigrate, you need tax clearance. Many South Africans, who have been living and working oversees for several years, are still liable for tax in South Africa. Only once they have financially emigrated are they no longer liable for tax in the country. To financially emigrate, they need emigration tax clearance.
Obtaining an emigration tax clearance when you already live overseas can be a challenging process, with which we can help. However, it is certainly better to do so before you leave the country. To formalise your emigration, although you have stayed in another country outside the Common Monetary Area, you need to complete a special form for the purpose.
You can obtain the Form MP336 (b) – Emigration from any of the South African commercial banks or the Reserve Bank. You can also make use of our services in this regard. Note: if you have lived outside South Africa for a period exceeding five years and do not own assets other than your insurance policies or inheritance, you do not need to obtain an emigration tax clearance certificate.
Apart from the Form MP336(b) – Emigration, you also need to submit a tax clearance certificate. This certificate states that your tax affairs are in order and thus paid up to date. Unless you go through the financial emigration process, you will stay liable to file your taxes with SARS, and will not have access to tax benefits in the county where you reside.
Fortunately, we are here to assist with professional tax advice and applications for tax clearance on your behalf. Of course, if your taxes are not up to date or payments are still due, you need to get such in order. To this end, you will appreciate our professionalism, speed of service, and attention to detail.
Keep in mind that financial emigration does not mean you give up your South African citizenship and passport. You also do not have to give up assets and properties in South Africa.
Our tax consultants are here to answer your questions, help you to get up to speed with your tax submissions, and ensure correct procedures are followed in applying for emigration tax clearance. For the purpose of tax clearance, the form to complete is IT21(a), and it is obtainable via SARS. We can also obtain such, helping to free up your time while we handle the tedious tax clearance tasks.
Disclaimer: This article is for informational purposes only and does not constitute financial, tax, or legal advice. Call us for professional tax advice, rather than relying on the information herein to make any decisions. The information is relevant to the date of publishing.