When it comes to the South African Reserve Bank, there’s a form for everything, and for everything a form. That is to say: our central bank loves paperwork! So what exactly is the MP 336(b) form, and when would you need to use it? The answer to that is pretty simple. The MP 336(b) form is used in the process of your financial emigration as a means of declaring your remaining South African assets and liabilities. Without it, you cannot emigrate financially.
Form MP 336(b) is a vital part of your financial emigration from South Africa
Financial emigration, also known as formal emigration, is performed by your choice in a local commercial bank. This is the official process by which you notify the South African Reserve Bank of your intention to wrap up your financial affairs back home. Every official process has an official form, and here, we’re talking the MP336(b) form.
Here’s what you need to know about financial emigration:MP 336(b) form.]
What are the steps and forms involved in financial emigration from South Africa?
Step 1: Download and fill out Form MP336(b) which is titled “Emigration: Application for foreign capital allowance”.
Step 2: Apply for an emigration tax clearance certificate from the South African Revenue Service. You will need to supply SARS with a certified copy of your completed MP 366(b) form that includes a breakdown of your capital assets remaining in SA. If your affairs are in order, SARS will issue you with a certificate that verifies your tax compliance status.
- If you have lived outside of South Africa for more than five years, and you have no remaining assets, it is possible to emigrate financially without prior tax clearance.
Step 3: Make your application to SARB (done through your bankers) to change your status from resident to non-resident for exchange control purposes.
Step 4: Obtain final approval and withdraw your assets, once SARB has given your financial emigration status change the thumbs-up. You will need an emigrant’s capital account with the bank that submitted your financial emigration to the Reserve Bank on your behalf. This is where the proceeds of your disposal of your South African assets will be paid, and the account through which you will perform your cross-border financial transactions as a non-resident for exchange control purposes.
How long does the financial emigration process take?
From the moment you submit your MP 336(b) form, the entire process of financial emigration can take between four and six months, depending on your specific circumstances, and the tax status of all parties involved.
A cautionary word on financial emigration
Completing the financial emigration process comes with certain disadvantages. In the interest of being prepared for every eventuality, it’s important to note that once you are a financial emigrant:
- You will not be permitted to hold a credit card or make use of personal credit facilities in South Africa (with the exception of property and vehicle finance) which means you’ll need to settle outstanding debt before your financial emigration application can be made.
- You will activate an exit charge (also known as Capital Gains Tax) on all assets, except for fixed property, at the date of your formal emigration. You are deemed to have disposed of your assets the day before your emigration was formalised, even if there was no physical sale.
FinGlobal: South African exchange control experts
Financial emigration is a personal choice. Not everyone is required to formalise their emigration from South Africa, nor does it make sense for everyone to do so. How do you know if you should emigrate financially from South Africa?
That’s where FinGlobal can help. Here’s why you should partner with the financial migration experts on your financial emigration:
- You are assured of our impartial, professional advice in assessing whether financial emigration is the best choice in your circumstances.
- You can let us handle all the paperwork from start to finish. All you need to do is sign on the dotted line, and we’ll submit everything to the right institution at the right time.
- We’ll hustle the timeline, coordinating the documentation flow to ensure the shortest possible turnaround time to completion by doing everything in our power to avoid delays.
- You benefit from expert assistance on tricky exchange control matters, as well as the peace of mind that we are fully compliant with all necessary authorities.
- You don’t have to lift a finger at all while we act as a tax agent to deal with SARS on your behalf, sparing you the headache of dealing with bureaucratic call centres from outside the country.
FinGlobal offers the full spectrum of cross-border financial services for South African all over the globe, including:
- Financial emigration
- Tax clearance
- Retirement annuity withdrawal
- Exchange control advisory
- Foreign exchange
- Tax emigration
- Tax refunds
- Pension Income
- Pension, Provident & Preservation Funds
Ready to get started on the road to financial emigration? Let’s talk. Take your free, no-obligation assessment today. Leave your details and we’ll call you back.