Emigrating, what about my annuity? | Fin24
 
  • Covid-19 Money Hub

    The hub will help answer your business and money questions during the coronavirus crisis.

  • Dudu Myeni

    The former SAA chair has been declared a delinquent director for her role at the national airline.

  • Cigarette Ban

    Govt says emerging research shows smoking leads to more severe cases of Covid-19.

Loading...

Emigrating, what about my annuity?

Apr 12 2013 11:03

A Fin24 user leaving the country is enquiring about his investment in a living annuity. He writes:

I am emigrating with Reserve Bank approval arranged by my bank and have a sizable investment in a living annuity in South Africa.

Am I bound to only take out the regular payouts or can I take out the total value?

Secondly, as a permanent resident of another country, will the living annuity payouts be taxable in South Africa?

Daryl Coker, Partner: Wealth Advisory Services at Citadel, responds:

At this stage, the SA Reserve Bank (Sarb) does not normally allow the transfer of a living annuity outside of South Africa; however one can apply to Sarb as this currently a grey area.

On whether the payouts will be taxable in South Africa, the regular payments of a living annuity are paid by the relevant companies into a South African bank account, and the bank will then remit the money overseas to you.

This will be subject to income tax depending on your tax residency status.

However, if there is a Double Tax Agreement with the new country, then you would only be taxed either in SA or in your new country. 

- Fin24 

Do you have a pressing financial question? Post it on our Money Clinic section and we will get an expert to answer your query. 


investing  |  money clinic
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.
 

Company Snapshot

Voting Booth

How has Covid-19 impacted your financial position?

Previous results · Suggest a vote

Loading...