Pres. Cyril Ramaphosa ratified this new tax law on 20 January. It stipulates that South Africans who wish to emigrate may only withdraw a lump sum from their retirement annuities and some preservation funds in South Africa three years after they are no longer taxable in South Africa.
However, a single concession was made: Those who submit their emigration applications before 28 February 2021 have until 28 February 2022 to obtain approval for the withdrawal of a lump sum according to the old rules. This concession is welcomed, as many potential emigrants are still experiencing delays in obtaining the necessary permits and a travel ban in the country they emigrate. International flights are still very expensive and not freely available.
This means that South Africans who work abroad but still have retirement investments in South Africa have only one month left to apply to emigrate financially.
ALSO READ: The three-year rule and what it means for South Africans leaving the country
