CAPE TOWN – Expected changes to the income tax laws in March 2019 will allow members who emigrate before they reach retirement date more flexibility to withdraw their retirement funds when they leave the country.
There are a number of ways people leave South Africa to live in another country.
- Citizens of South Africa and permanent residents qualify to officially emigrate. Certain emigration allowances are allowed to be taken out of the country. On emigration, one ceases to be a “country resident” of South Africa.
- If a citizen or permanent resident merely leaves South Africa to live in another country but does not officially emigrate pending approval by the South African Reserve Bank, that person is still considered a “country resident” and does not qualify for the emigration allowances. That person will continue to qualify for the investment allowances afforded to “country residents”.
- Temporary residents who have temporary visas to live in South Africa do not qualify to emigrate because they were never citizens or permanent residents. However, they are usually allowed to take their funds out when they leave South Africa.