Some pony tail marketing guru came up with a new term “financial emigration” and quick fox hungry South Africans, mainly professionals, journalists and financial and retirement advisers fell for the new buzz word. All the while its but a figment and at best a cleverly designed brand name
Formal emigration (also often incorrectly referred was to as Financial Emigration) is but one building block that may be taken into account to determine whether or not an individual broke his or her ordinarily tax resident status!
For expats #Saffas or @wegkaner folk in countries with whom South Africa has entered into double tax agreements (DTA) or treaties, the Excon process to formally emigrate (financially emigrate as some may think of it) is of ZERO value!
UAE, UK, USA, QATAR, Australia, most of the EU and GCC countries (but not countries like Bahrain and not the Philippines), are example of treaty countries.
An individual’s tax residence is not automatically broken when he or she formally emigrates.
The deciding factor remains whether or not an individual breaks his or her ordinarily tax resident status! However, for most in said DTA countries, residence status is not determined by ordinarily resident tests but by treaty tests
I am a qualified Chartered Accountant (South Africa) and a registered Master Tax Practitioner (South Africa) and Trust and Estate Practitioner.
I live in Cape Town yet many clients and intermediaries are based in Sandton, Durban, Bloemfontein ad Pretoria. I, therefore, commute on a regular basis.
I have been married for some 20 years, we have no children and we love to travel. We share an affinity for good company, interesting food and good value for money wines.
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