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moving2018

Financial Emigration

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Has anyone on this forum done financial emigration successfully without the assistance of a company such as Finglobal.  Just need to know it is possible before I start what looks like a very difficult process myself.  TIA

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We used our bank (investec) and we had our tax consultant deal with SARS (and we really needed someone who could actually contact them and get them to get their butts into gear, they were shocking - reserve bank part was very efficient though). Honestly, I wouldn’t do it myself.  It was stressful enough even with the experts doing it all. 

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I know it’s not what you wanted to hear, but I have literally, just this week, finalized my Financial Emigration through FinGlobal and I couldn't be more happy with the results! From start to finish their service has been absolutely top notch. Took about 5 months for my specific situation.

It can get a bit pricy if you have lots of policies and assets to cash out, but it’s probably a mere fraction of the cost of flying back to SA and spending weeks to months sorting out the mess and jumping through the ridiculous hoops necessary to get the process moving along. I caught  a really lucky break and got my payout and Forex transfer right when the Rand hit its recent high, which effectively paid for itself, as I was going by a much higher exchange rate back when I started out

If your financial situation is super simple, you bank with someone who is able to process your MP336(b) without you physically walking into a branch, and you use SARSefiling, then you may be able to do it yourself. But there are a lot of regulations, moving parts and a very specific order that needs to be followed. The process also takes quite a while, even with pros doing most of the heavy lifting. One screw up or delay and you could be set back weeks... probably months.

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[at]JumpingJasonFlash thanks for that info. I guess there are always mixed results when working with companies. I have been researching anything and everything in order to get my ducks in a row for more immediate forms and processes as well as what will happen in 2 years time (eg fin emigration).

Did you only contact FinGlobal or did you shop around? It's so difficult to put a price on the process. I saw a post on another forum where they quoted R38 000 to process a R200 000 policy. (nearly 20% :().  Was your experience similar to this?

Thanks

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4 hours ago, MJames said:

[at]JumpingJasonFlash thanks for that info. I guess there are always mixed results when working with companies. I have been researching anything and everything in order to get my ducks in a row for more immediate forms and processes as well as what will happen in 2 years time (eg fin emigration).

Did you only contact FinGlobal or did you shop around? It's so difficult to put a price on the process. I saw a post on another forum where they quoted R38 000 to process a R200 000 policy. (nearly 20% :().  Was your experience similar to this?

Thanks

That sounds ridiculous. I can’t remember exactly what we paid, I probably have a record somewhere, but as a % it was nowhere near that, in fact it probably ended up being much less than 1%. However you may find that there is some kind of basic/ minimum fee that gets charged for the admin work involved irrespective of the value of the asset.

Have you tried asking your bank’s exchange control department for a quote?

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14 hours ago, MJames said:

[at]JumpingJasonFlash thanks for that info. I guess there are always mixed results when working with companies. I have been researching anything and everything in order to get my ducks in a row for more immediate forms and processes as well as what will happen in 2 years time (eg fin emigration).

Did you only contact FinGlobal or did you shop around? It's so difficult to put a price on the process. I saw a post on another forum where they quoted R38 000 to process a R200 000 policy. (nearly 20% :().  Was your experience similar to this?

Thanks

I actually have one silly Sanlam RA and they quoted 29k.  I will see if I can get it done myself.  RA value after penalty and SARS 51k. Probably TMI, but yes, I think the cost is really high.  Best of luck.

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I’d look into not actually financially emigrating if the amount falls under the usual discretionary allowance. (This used to be R1m, not sure if it’s increased.) Cash in your RA and take the penalty /pay the tax on early redemption (if I understand correctly you can do that without emigrating ? If I’m wrong this won’t work) so that’s the same but then just get your normal tax clearance from sars and use your normal bank to send the money over to a US account. Quick easy and hardly any fees.

Edited by SJ272

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The discretionary allowance (what you can take out of SA) has nothing to do with whether or not you are eligible to cash out an RA.  You can only  cash out an RA if it is worth less than R7 000 currently.  If you officially emigrate, you can cash it out, regardless of the value, but taxes are due. 

 

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I wasn’t actually directly linking them, just looking for a cheaper option to get the money out. As i said above, I didn’t know what the rules for cashing out an RA were. ( I was lucky enough to have other types of pension/provident funds where I had to pay a tax penalty for cashing them out but otherwise had no restrictions on what I could do with my own money.) The suggestion about using the discretionary allowance was simply given as an easier way to take funds out without having to officially financially emigrate, given the cost of that process vs the amount of funds mentioned.  If the RA  indeed can’t be surrendered  then - as I said - “If I’m wrong this won’t work”. 

 

 

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Thank you all.  Hubby got his out no problem.  This I think is a Sanlam requirement, so yes, will do what I can and go as far as I can.  If all else fails I will look into it when we first visit.  Thank you all for input.

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On 4/17/2018 at 1:11 AM, moving2018 said:

I actually have one silly Sanlam RA and they quoted 29k.  I will see if I can get it done myself.  RA value after penalty and SARS 51k. Probably TMI, but yes, I think the cost is really high.  Best of luck.

Ouch... always SARS to put a cherry on the top.  I think some of the "older RA's are a beast to get out. So many choices and companies to use... FinGlobal, Expatri8 and Exchange for Free. Might have a look and see if I can do it myself when the time comes.

On 4/17/2018 at 5:18 AM, SJ272 said:

I’d look into not actually financially emigrating if the amount falls under the usual discretionary allowance. (This used to be R1m, not sure if it’s increased.) Cash in your RA and take the penalty /pay the tax on early redemption (if I understand correctly you can do that without emigrating ? If I’m wrong this won’t work) so that’s the same but then just get your normal tax clearance from sars and use your normal bank to send the money over to a US account. Quick easy and hardly any fees.

Thanks for your great info. I read that Allan Gray is really great in assisting with this and do it in house.. maybe a bit of running around but cost saving might be there. With the other smaller RA's maybe best to cash out, pay tax and transfer as cash. 

Fingers crossed, this will all be more cost effective in 2 years time.

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