Emigrating from South Africa to Australia: Potential Tax Issues
There are a number of potential tax issues to consider, especially if you’re considering emigrating from South Africa to Australia.
If you plan to retain any assets (including property, shares or funds), other investments, trusts or business interests in your home country when you move to Australia, then there may be tax and other financial considerations to take into account before you leave.
Australia taxes all permanent residents in Australia on all their income worldwide, regardless of source and the sale, transfer or disposal of assets can also be subject to Australian tax. There may also be financial, legal and tax implications in the country where the assets are held.
It is therefore important to seek professional tax advice from your local financial advisor (and/or accountant) before you leave for Australia.
Emigrating from South Africa to Australia: Financial Planning
Due to the exchange control environment in South Africa, the sharing of information between South African and Australian tax offices and the (avoidance of) double taxation treaty between South Africa and Australia, it makes sense to consult with a suitably qualified, regulated provider in South Africa before your departure. Also ensure that you allow sufficient time to complete any necessary financial restructuring of your affairs before you leave.
Some questions to consider before you engage an advisor:
- Which type of clearance do I need to transfer money out of South Africa?
- How will my partner / dependents transfer proceeds from my life policy if I die?
- Will I be taxed if I transfer money to Australia?
- What are the tax implications of transferring a South African pension to Australia?
- Will selling South African property give rise to a tax liability?
- Do I need to continue to lodge South African tax returns after I leave?
- Why do I potentially still need a South African will?
Cashkows can provide South African financial planning assistance to take care of your South African investments and work with an Australian financial planner to ensure advice is structured to take both countries’ taxation and laws into account. Visit the Cashkows Website for more information on their international financial planning services.
