Budget Postponed - Your Tax Residency Should Not Be

Do Not Let Tax Uncertainty Hold You Back

By now it is common knowledge that the National Budget was postponed until 12 March 2025 and while a sense of calm has returned to the markets, business owners, investors, and South African taxpayers grapple with many unanswered questions.

These unprecedented times may be of special interest to South Africans residing abroad and those considering relocating to another country, as the Budget postponement brings the important consideration of permanently ceasing tax residency in South Africa to the fore.

South Africans residing abroad who have not yet formalised the cessation of their tax residency through the formal process of financial emigration and in doing so, protect their worldwide income from being taxed in South Africa, may find this period of uncertainty the ideal time to act.

It has been widely reported that National Treasury’s plan to increase the VAT rate to 17% proved to be a pill too bitter to swallow for certain parties within the Government of National Unity (GNU). The GNU partners will use the time until the Budget is tabled, to thrash out details on how to balance the Governments’ books in 2025/26.

While this uncertainty remains, it’s crucial not to leave your tax situation in the same state of limbo as created by the postponement of the Budget.

Do not be left paralysed, frustrated and indecisive. Reach out to our expert tax practitioners who can guide you with clarity and confidence.

We provide expert assistance in:

• Two-Pot Retirement Policy Withdrawals: Guiding you through the process of accessing your retirement funds.
• Non-Resident Confirmation Letters: Helping you obtain official confirmation of your non-resident tax status.
• Financial Emigration from South Africa: Ensuring a smooth transition for South Africans relocating abroad.
• Financial Emigration – Funds: Facilitating the transfer of assets and funds in compliance with regulations.
• Tax Services: Providing expatriate tax planning and compliance solutions.
• Approval for International Transfers: Assisting with regulatory approvals for cross-border fund movements.
• Policy Withdrawals: Managing the withdrawal of policies efficiently and in accordance with tax laws.