If you’ve made the move abroad and left your retirement savings in South Africa, you’re not alone—many expats find themselves in the same boat. While settling into a new country is an adventure, figuring out how to access your pension, provident fund, or retirement annuity back home can seem confusing at first.
The good news? You can make the process much smoother by understanding how your tax residency status fits into the bigger picture. With the right information and a clear approach, you’ll be in a strong position to manage your money confidently and avoid unnecessary hiccups along the way.
This guide unpacks why tax residency matters for your retirement savings and walks you through what to expect at each step.
Why your residency status matters for Retirement Annuity withdrawals
Since legislative changes in 2021, expats must be non-residents for tax purposes for an uninterrupted period of at least three years before they can access their retirement annuity savings. This non-resident status isn’t automatic when you leave South Africa; it is only recognised once SARS formally confirms your tax residency has ceased. This process is called tax emigration. Until your official status is updated, fund administrators are unable to process your withdrawal.
Understanding and following the steps to confirm your tax residency ensures your withdrawal is managed according to South African law and with full transparency.
The importance of the “Effective Date” of Non-Residency
The “effective date of non-residency” is the specific date SARS acknowledges you as no longer a South African tax resident. This date is used to calculate when your three-year non-residency period begins. Here’s why it matters:
- Eligibility timing: The three-year waiting period starts from this date, not necessarily from the day you physically leave South Africa.
- Withdrawal processing: Your fund is eligible for withdrawal only after this waiting period passes.
- Accurate records: Ensuring this information is correct simplifies the withdrawal process.
Being precise with your exit date helps streamline your application and aligns your paperwork with legal requirements.
Documentation and compliance with SARS
To complete a retirement withdrawal as a non-resident, SARS requires specific documentation. This typically includes:
- Confirmation of your non-resident status (such as a Notice of Non-Resident Tax Status)
- Proof of your date of departure, such as passports or travel records
- Evidence of tax compliance in your new country
- Relevant fund withdrawal forms
Ensuring all documents are in order helps prevent processing delays and demonstrates your compliance with SARS requirements.
Navigating the tax residency process
Changing your tax residency is a formal process involving fiscal considerations. It’s not uncommon for individuals to overlook steps or make assumptions about their status. Taking a careful and thorough approach ensures your withdrawal and tax affairs are managed effectively. If you are ever uncertain, seeking professional guidance can provide clarity and practical support.
How FinGlobal supports South African expats
FinGlobal offers experienced support for South Africans living abroad who wish to withdraw their retirement savings. Our team helps you:
- Determine and document your effective date of non-residency
- Track and verify your three-year period as a non-resident
- Liaise with SARS to confirm tax emigration
- Prepare and submit all required documentation
- Ensure your withdrawal is processed efficiently, according to the latest regulations
With extensive experience assisting clients globally, we aim to make your financial transition straightforward. Our goal is to help you access your funds securely and in line with all compliance standards.
Ready to access your South African retirement savings? Contact FinGlobal for a free, no-obligation assessment of your tax residency and South African retirement withdrawal options. We are here to guide you every step of the way.