Deceased Estates and Taxes

Deceased estates and taxes are additional troubles to deal with over and above losing a
loved one. It’s more of a burden when living abroad – making the grieving process much
more taxing. We’re here to tell you what you need to know regarding deceased estates and
taxes while living abroad.

Being classified as an emigrant after having financially emigrated and then having to access
the deceased’s estate is quite the process when doing it alone. You will need to provide
proof of emigration from South Africa. This documentation will have been received when
filing for emigration with SARS.

Don’t fret if your papers have been lost in the move though. A request may be lodged with
SARS to retrieve the necessary documentation. Once these details are received, you will
then be able to transfer your inheritance funds abroad.

In the case that you are only abroad temporarily, you will still be classified a citizen of South
Africa and are subject to the same laws and financial regulations as people living within the

In the event that you still have access to your South African green barcoded or new smart
card ID, you can transfer R1 million using your annual allowance, and an additional R10
million with a tax clearance certificate from the SARS. This is something to keep in mind
when transferring funds from deceased estates – over and above the tax implications.

There may be special cases of emigration that SARS will be able to assist with. In these
cases, you can go through a belated emigration process. This involves backdating your
emigration with SARS to reflect when you left South Africa. During the belated emigration
process, your financial assets in South Africa will be assessed.

In South Africa, there is no tax payable or due on money received from an inheritance. You
also will not be subject to Capital Gains Tax (CGT) on your inheritance. All relevant taxes
would have to be paid by the estate of the deceased person as estate duty. After this has
been settled, there is no longer any tax due on your inheritance. Inheritance payments can
often be an overly complex and lengthy process – let our expert team support you.

The RandTangle team will ease you through this process and deal with the finer details so
that you don’t have to. For complete assistance with claiming and transferring your
inheritance and for any other questions you might have – contact us for a no obligation
quotation or information –

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The start to end of transferring your funds abroad

Investing in international property; paying for a destination wedding; repatriating parts of your salary to loved ones in another country or any other reason for transferring your money abroad is a process that RandTangle can assist with. You might have wondered what the process of transferring funds internationally is. There are several ways you can access your money in South Africa. This includes using normal allowances, such as your annual Discretionary Allowance, or formally emigrating from South Africa.

The first is a Single Discretionary Allowance of up to R1 million a year and the second is your Foreign Investment Allowance also known as a Capital Allowance of up to R10 million a year.

See the table below to help you understand the difference:

Single Discretionary Allowance (SDA)Capital Allowance (CA) or Foreign Investment Allowance (FIA)
A limit of R1 million in a calendar year.R10 million limit in a calendar year.
No foreign Tax Clearance Certificate (TCC) is necessary.You need to apply for a foreign Tax Clearance Certificate from SARS before you can use it.
This allowance may be used to make a number of overseas payments and investments. For example: Gifts Loans Investment purposes, like buying shares Donations Study allowances Overseas card payment And more.This may be used for other purposes where you already exceeded your SDA and may be invested into offshore investment portfolios, property, or other assets and investments in foreign countries outside the common monetary area (eSwatini, Lesotho, Namibia, and South Africa).

Source: South African Reserve Bank (2021)

If you’re thinking of transferring your funds abroad or investing, here’s what you need to know. You will need a tax clearance certificate if you are transferring any funds abroad. South African residents over the age of 18 may use their R1 million discretionary allowance to make international payments without having to provide supporting documents.

South African residents over the age of 18 may also use their R10 million investments allowance to invest in funds abroad. To make use of this, you will need to get a Tax Compliance Status Pin Letter from SARS.

This certificate can be used to apply for foreign investment allowances available to South Africans abroad, without financial emigration. To get such a certificate can take up to 21 working days. SARS keeps an updated list of all required supporting documents for Foreign Investment Allowance on their website, however our team at RandTangle can help you source the necessary documents with ease.

Supporting documentation is required by the South African Reserve Bank (SARB) for all other payments.

Our team at Randtangle with its wealth of exchange control expertise can guide you and submit applications to ensure an effective process to invest or transfer offshore. We can assist you every step of the way, from A-Z. We will ensure that your transfers are quick and hassle-free, no matter where you want to send them and make sure you are compliant with South African exchange control regulations throughout any transfers you make.

RandTangle only charges a service fee based on the specific circumstances and need surrounding the emigration of each client, and the services required, we do not have a commission-based service fee that changes based on policy size.

For complete assistance with transferring funds abroad and any questions, you might have- contact us for a no-obligation quotation. –

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The Effect of Exchange Control on Financial Emigration

Exchange Control has impacted the process of financial emigration for South Africans. The most recent changes herein came into effect on the 1st of March 2021, when the exchange control component of financial (formal) emigration was eliminated.

This new process of controlling an emigrant’s remaining assets in South Africa has fallen away and all transfers from their accounts will be managed and treated as regular fund transfers. These transfers need to align with the same provisions as any other foreign capital allowance transfer applicable to current residents.

The new regulation specifically benefits South Africans who have formalised their non-tax residency status with SARS. The income transfers for South Africans permanently living abroad are no longer required to report to the Financial Surveillance Department.

As a result of the removal of this specific exchange control restrictions on individuals, National Treasury also advised in the 2020 Budget Review that both South African residents and emigrants would be treated equally.

South African residents or South Africans residing abroad, now enjoy the same single discretionary allowance of R1 million without the need for a tax clearance status from SARS. Authorised entities may also allow the transfer of funds of up to R10 million.

Exchange controls still prevalent in direct foreign investments by South African corporates and for the acquisition of foreign assets by institutional investors.

If this process seems daunting, rest assured that we assist with every step of the way. We save costs and deliver a full-service solution. At RandTangle, we specialise in exchange control services. Simply fill in a quick form online, and let one of our helpful consultants contact you to help with the process.  

For complete assistance with your financial emigration process and any questions you might have – contact us today:

(Sources: Final Response Document on the 2020 Draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill, 2020 Draft Taxation Laws Amendment Bill and 2020 Draft Tax Administration Laws Amendment Bill,

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Tax After Financially Emigrating

The Financial Emigration process changed on 1 March 2021, but what happens once financially emigrating? Let’s answer your questions regarding exit tax in South Africa and the implications after leaving the country.  

Tax emigration and financial emigration are often confused to be the same. Financial emigration is that of leaving the country to live abroad and transferring all your financial assets out of the country. This process does not mean an individual is not considered a tax resident of South Africa. It is also important to note that changing your tax residency does not imply that you can suddenly financially emigrate and may not even have an impact on the financial emigration process.  

SARS studies the time spent in South Africa as well as the assets held in your name – should you financially emigrate this process will provide evidence for the tax emigration process. 

SARS then requires you to declare your tax status to decide how you should be taxed. A South African tax resident pays tax based on worldwide income and asset based whereas a non-tax resident will only be taxed on South African based income and asset base.  

Exit Tax is the final tax charged on one’s assets before leaving South Africa and is also referred to as Capital Gains Tax. Exit tax is due the day of or the day before becoming a non-tax resident of South Africa, this includes discarding of certain assets such as foreign fixed property, shares, unit trusts and trust funds. This does not apply to South African fixed property in the taxpayer’s name, cash, personal assets nor retirement interests held in pension, provident and retirement annuity funds.  

To be declared a non-tax resident, you need to undergo an ordinarily resident test or a physical presence test. This proves whether you have a permanent residence to return to or how many days at a time you are in the country. Once declared a non-tax resident, South Africans will no longer be charged worldwide income tax in South Africa – they will only be charged tax on SA based income. Should a taxpayer not submit Exit Tax, they can be charged with a penalty of up to 200%.  

The emigration process can be backdated as far back as when you first leave the country.  

Our team at RandTangle can walk you through the tax emigration process and deal with all the necessary parties so you can emigrate with ease. Contact us today at

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