Rand Solution

We are the Solution to Recover your Rands and more...

We provide a comprehensive range of solutions for repatriating your rands from South-Africa, catering to both simple tax returns and more complex requirements.

If you require assistance, our team of experts is here to help!

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Rands Out

Whether you are a South African residing in the country or living abroad, you can make use of your Annual SDA (Single Discretionary Allowance) to transfer your savings from South Africa to foreign accounts. The yearly allowance stands at R1 million per South African taxpayer aged 18 and above. To remit your funds abroad, you will need a South African Barcoded ID or the new ID card, along with a valid SA Tax number.

AIT Process

For South African residents or those temporarily abroad, the annual Foreign Investment Allowance (R10 million) for remitting funds abroad is no longer applicable. Any amounts exceeding R1 million per annum will require approval from SARS. We can handle the application process to SARS on your behalf.

Annual Travel Allowance

If you possess an overseas bank account, you can avail of the annual travel allowance for Exchange Control purposes. To utilize this allowance, the funds must be transferred from your South African bank account to an overseas bank account under your name. For children aged 17 and below, the allowance is capped at R200,000 per calendar year. However, for adults with a valid SA Passport and valid Air ticket, the allowance stands at R1,000,000 per annum.

Please note that the children's travel allowance can be deposited into the parent's overseas bank account.

Attention South African Expats: SARS is Targeting Your Tax Residency Again!

Brace Yourself for SARS' Recurring Resurgence

Just like its viral namesake, the SARS tax authority seems to have a knack for resurfacing just when you thought you were in the clear. We're here to address the ongoing challenge of tax residency and how SARS determines your tax obligations or exemptions.

Navigating the Tax Residency Puzzle

This situation involves two critical aspects of regulations that are relevant to our discussion:

New Interpretation of Existing Legislation (Effective March 1, 2020): A fresh take on the Income Tax Act 58 of 1962's Section 10(1)(o)(ii) is now in effect. This revision introduces a tax exemption of R1.25 million per year on foreign employment income. However, income exceeding this cap is subject to a hefty 45% taxation. While this interpretation is noteworthy, our primary focus is on the second aspect.
Lifting of Exchange Control Regulations (Effective March 1, 2021): A significant development involves the removal of exchange control regulations impacting cross-border money flows. This change aims to influence how South African tax residents engage with their foreign income.

The Exemption in Question

The tax exemption specifically caters to South African taxpayers who meet the following criteria:

Worked beyond the South African borders (for South African or foreign employers) for a period exceeding 183 full days within a 12-month span.
Spent more than 60 of these days continuously outside the South African borders.

While the intricacies of this rule are beyond our current scope, it's crucial to understand its implications, as it can impact your tax residency status.

Beware of the Pitfalls: Non-Resident Tax Responsibilities

Here's a scenario:

South Africans who emigrated but return to South Africa, spending more than 183 days within a 12-month period (including over 60 consecutive days), become liable for taxes on income generated from a South African source during this stay. Typically, this tax takes the form of a withholding tax, usually around 15%, regardless of income source (with exceptions we'll delve into in a separate article).

This doesn't affect South Africans who emigrated over 3 years ago (post-March 1, 2021) or 5 years ago (pre-March 1, 2021). However, it poses a concern for those who assume they're exempt based on their past actions or previous regulations.

The Unforeseen Consequences

Any extended presence or financial activity within South Africa might cast doubt on prior non-resident status. SARS holds the power to reverse or negate former statuses, which not only subjects individuals to past and future taxes in South Africa but could also trigger the 'resetting of the clock' concerning the 3-year retirement savings lockdown rule.

Stay Informed, Stay Prepared

As South African expats, understanding the nuances of tax residency and its evolving landscape is paramount. SARS' resurgence emphasizes the importance of staying up-to-date with the latest developments to ensure your financial security and peace of mind.

Let us help you navigate these complexities and keep your financial future on track. Contact us today for expert guidance tailored to your unique situation.

The reality is, there is more to this. Get Expert Advice and Dive Deeper into Tax Residency.

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Navigating the Journey: Moving Your South African Retirement Funds to Your New Home Abroad

Welcome to Rand Solution, where we value your financial well-being and aim to guide you through the intricate process of transferring your retirement funds from South Africa to your new country of residence. As you embark on this journey, it's essential to have a clear roadmap to ensure a smooth and secure transition for your hard-earned savings.

Transferring retirement funds across borders involves navigating complex regulatory frameworks and tax implications. At Rand Solution, we recognize the importance of comprehensively understanding these regulations to provide you with tailored solutions that align with your financial goals.

Our team of experienced financial advisors specialises in cross-border financial planning. By consulting with us, you gain access to expert guidance on the most tax-efficient and legally compliant avenues for transferring your retirement funds. We are here to support you in making informed decisions that optimise your financial future.

At Rand Solution, we offer a range of transfer methods, Retirement Annuities (RAs) and personalised investment strategies. Our advisors work closely with you to assess your unique circumstances and recommend the most suitable transfer method that aligns with your long-term financial objectives.

Tax considerations are fundamental in the transfer of retirement funds. Our team will help you navigate the tax implications in South Africa and your new country of residence, ensuring that your funds are transferred in a tax-efficient manner while complying with all legal requirements. We understand the importance of a smooth and efficient transfer process. Our dedicated team assists you in completing all necessary documentation accurately and promptly, reducing the risk of delays and ensuring a seamless transfer of your retirement funds.

At Rand Solution, we prioritise the safety and security of your funds. Rest assured that we partner with reputable financial institutions and employ secure transfer methods to safeguard your retirement savings throughout the transfer process.

Transferring your South African retirement funds to your new country of residence is a significant financial decision that requires careful planning and expert guidance. At Rand Solution, we are committed to being your trusted partner on this journey, providing personalised solutions and unwavering support to help you secure your financial future with confidence. Trust Rand Solution to be your companion in navigating the complexities of cross-border retirement fund transfers.