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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
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