What is the difference between immigration and formal emigration?
Immigration is the process of relocating to another country. Formal emigration is the financial exit for exchange control purposes.
Physical relocation does not automatically result in financial exit – if you haven’t formally emigrated you are viewed as a South African temporally abroad, and subject to same tax and exchange control regulations as others living in South Africa
The process of Formal Emigration includes procedures such as a taxpayer status change with the South African Reserve Bank (SARB) from resident to non-resident.
Did you know that physical relocation does not automatically result in financial exit? If you have not emigrated formally, you are viewed as a South African temporally abroad. This means that you are subject to the same tax and exchange control regulations as others living in South Africa!
Formal Emigration will result in a capital allowance. You can have a capital allowance of R10 million per adult or R20 million per family and a travel allowance of up to R1 million per adult and R200,000 per child under the age of 18.
Furthermore, you will have an export allowance entitling you to export household and personal effects, including cars up to a total insured value of R2 million. It’s possible to request the transfer of your remaining liquid assets that exceed the foreign capital allowance limits. Randtangle also manage the application for assets exceeding the allowances.
We offer a full administrative service that takes care of all the bureaucracy surrounding approvals, tax clearance and exchange controls for your money to go where you go!
It’s our sole aim to untangle your finances from South Africa and reuniting it with you at your new home.
Formal/Financial Emigration Steps
We are breaking down the process details to the bare essential. Remember, this process is complicated, so we highly advise the assistance of a professional.
- You will have to complete a form MP336(b) – Emigration: Application for foreign capital allowance.
- The Form MP336(b) must be accompanied by a printed tax compliance status verification result obtained via the SARS Tax Compliance Status (TCS) system reflecting your compliance status including a breakdown of your remaining capital assets held in South Africa.
- Emigration is based on the Form MP336(b), therefore, you will also have to provide SARS with a certified copy of the completed Form MP336(b).
- If you have resided permanently outside South Africa for a period longer than five years and you do not possess any assets other than an inheritance or insurance policies, it would not be necessary, for exchange control purposes, to obtain a tax compliance status verification result.
- Submit the Form MP336(b) and the tax compliance status verification result, if applicable, to your bankers. You will also have to submit any other documentation as required on the Form MP336(b), which will include a copy of the permanent residence permit, if you have been granted permanent residence abroad.
- You submit the completed Form MP 336(b) and supporting documents to an Authorised Dealer, i.e. commercial bank in South Africa at which you bank, or any commercial bank in South Africa if you no longer have an account at a local bank.
Ensure you have the following documents ready when you start the process of formal emigration:
- Certificate of Citizenship/ Naturalisation or Permanent Residence permit in the Foreign Country (Including spouse & children (born in SA, under 18) if they are South African residents as well)
- Certified copy of passport and Identity documents/Birth Certificates of all individuals listed on the Form MP336(b)
- Documents of title of all articles of value. For example: The original title, for example property title deeds, will need to be dispatched to the Non- Resident Centre to form part of your South African blocked assets.
If this process seems daunting, rest assured that we assist with every step of the way. We save costs and deliver a full-service solution for Formal Emigration!
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What you need to know
If you are a former South African citizen who lives abroad, but needs access to trapped funds, like a retirement annuity, we can assist you to emigrate formally.
You will also be able to qualify for an allowance as soon as you emigrate formally.
Your capital allowance will be an amount of R10 million per adult or R20 million per family and a travel allowance of up to R1 million per adult and R200,000 per child under the age of 18.
Furthermore, you will have an export allowance entitling you to export household and personal effects, including cars up to a total insured value of R2 million.
It is also possible to request the transfer of your remaining liquid assets that exceed the foreign capital allowance limits. We also manage the application for assets exceeding these allowances.
The processes, how long it takes and estimate costings – Randtangle need to advise if they are happy with the above
How are RandTangle’s fees calculated?
RandTangle charges a service fee based on the specific circumstances and need surrounding the emigration of each client, and the services required, We do not have a commission based service fee that changes based on policy size. Contact us for a no obligation quotation.
How do I get my money out of South Africa?
There are various ways you can access your money in South Africa. This includes using normal allowances, such as your annual Discretionary Allowance, or formally emigrating from South Africa. We can help with all of these.
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