Many things need attention when moving home across borders, your tax affairs are one of the most important because they have a material impact on your overall wealth.
Inform SARS immediately on your return
Your tax position changes as soon as you return to South Africa. The onus is on the taxpayer to inform SARS of your change in status and meet your new obligations as a resident.
No tax is due on funds you take back into South Africa, so those funds are tax-free if you have grown a nest egg overseas.
However, pay close attention to exchange control regulations and ensure you meet all the criteria when moving funds.
No tax is due on any return your investments earned during your time overseas, and there is also no tax due on the capital sum held.
However, be aware that tax on the return on investment (ROI) measures from the day you return to South Africa as a tax resident to the date the funds are received.
An estate tax is due on the full value of all your accrued assets on death, including any investments or assets held overseas.
Plan in advance
South Africans going back home should ensure they are fully aware of the financial implications of their return. Cross-border tax rules can be complicated, and it is best to be fully informed before you move, and your tax status changes. Advanced financial planning could mean significant tax savings and a trouble-free move.
To ensure your return home runs smoothly from a financial perspective, please book a call with Michele.