Newsletter • Quarter 4 • 2020
The New Financial Emigration Law
The new Financial Emigration Law was established in Parliament by the National Treasury and SARS on 13 October 2020. This new law will effectively phase out the concept of emigration for exchange-control purposes.
Under the current system, members of preservation funds and retirement annuity funds may withdraw from these funds if they formally emigrate from South Africa.
South Africans who have moved abroad or plan to permanently leave South Africa now have until 28 February 2021 to effect Financial Emigration.
If not, you will be faced with tougher exit rules under the 'three-year lock-up' dispensation. This will obviously impact on your financial situation. This law will mean that South Africans emigrating from the country will only be able to make a withdrawal when they have ceased to be a tax resident and have remained so for at least three consecutive years.
As each and every personal and financial scenario is unique, it is crucial that you get advice from a certified financial adviser. If you want to cease being a tax resident of South Africa, they will look at your own set of circumstances and give you the best advice.
Your well-being matters
The coronavirus pandemic has created a challenging time for many of us. We understand that the performance of your investments may cause you worry or stress, especially with regard to your financial planning.
If you are in need of any help, guidance or support during these unusual times, please contact the employee assistance helpline.
This service is free and totally confidential.
The helpline is run by Company Wellness Solutions and offers professional counsellors. It is open and FREE to all Woolies employees.
Please contact them as follows: