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What role does technology play in making global financial migration easier?

2012-02-09T09:20:00.000+02:00

So the rules have changed. The government has now said yes, if you live permanently overseas and you have a Retirement Annuity in South Africa, you are legally entitled to withdraw those funds, before maturity and before retirement age. Great news isn’t it? But how on earth (or from 10 000 kilometres away) does one practically do that? Insurance forms, bank accounts, SARS, the South African Reserve Bank, tax clearance certificates, MP336, IT21A, blocked rand and asset accounts… it all sounds a little too complicated and bureaucratic to do, even if you were in South Africa, let alone from 1000’s of kilometres away!!

This is where the experience, the staff and the systems at cashkows.com come in – making the whole business of getting your RA paid out and transferred safely and efficiently to you seem quite effortless. We know what forms need to be completed. We know who to talk to at the numerous banks, the SARS offices and the insurance companies. We have learnt how to make completing and submitting the apparently endless and seemingly onerous documentation easy for our clients through our secure and robust online system and our world class couriers. We have the best financial, tax planning and FX team available to ensure that you get as much of your hard earned cash out as is humanly possible. We are also fully up-to-date and aware of the ever changing rules and regulations that govern transactions and processes of this nature and constantly improve our systems to accommodate new processes and simplify the requirements from the client’s perspective.

So what role does technology play in all this I hear you ask. The short of it is that it doesn’t really matter… as long as the best skills are dealing with your case at the right time through the right procedures and our technology and expertise are ensuring the most effective use of your valuable time then ASP.net, MSSQL, SSL, PDF pre-pop, Ajax and JavaScript should mean about as much to you as a Chinese dictionary to a 6 month old baby. (For the record, the above technologies do in fact enable easier global financial migration as they form the foundation of our IT system that has been developed to make the process easier for you).

Yours in technological excellence
The team at cashkows.com

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From the UK to South Africa

2012-01-16T11:31:00.000+02:00

As the only “Pommie” in the team at cashkows.com I thought it may be interesting to share just a few of my experiences having done the exact opposite to many of our customers and moved to South Africa from the UK!
Firstly I should say that the term “Pommie” isn’t completely accurate. I am actually from the Isle of Man and whilst the Island is within the UK, I am in fact a “Manxman”…..something I am proud of.
I moved to South Africa in October 2008 after losing my job in offshore banking – a result of the global financial meltdown. What a blessing that proved to be!
The reason we chose the small town of Hermanus in the Western Cape is because my wife is South African and we’d spent many fantastic holidays here over the previous eight years.
Having made the decision to “emigrate” we put the wheels in motion to prepare for the physical move………I’ll spare you the details, suffice to say I have considerably more grey hairs post the move than I did before!
Although we have close family in South Africa I do recall feeling like a fish out of water when we stepped off the plane and the cold realisation hit me: this time it isn’t a holiday, I have to make a living to support my wife and our two daughters.
Anyhow we settled in very well and started to make our way quite nicely. Things improved still further when a chance meeting led to me joining the fold at cashkows.com.
That’s a very brief synopsis of how we got here……now for some of the more humorous highlights during our time in South Africa….thus far!

Home Affairs was one of my first ports of call after arriving and what an interesting “challenge” it proved to be. I hadn’t previously come across the concept of queuing to join a queue in order to get a form to join another queue to make an appointment to see the right person. However heeding the advice of some seasoned “professional queuers” I learned quickly and from my second visit onwards I always pitched up with a packed lunch!
After several “visits” I finally made it to the point at which I sat across the desk from the top dog who would make the decision about issuing me with an ID book or not and quickly got on his wrong side after passing comment about the queues. Feeling as if I was on the back foot at this stage I remember rapidly looked around the office for some means of rescuing the situation and noticed his poster of Manchester United Football Club….bingo! A quick word about my “mate” David Beckham and the deal was done!

Driving in South Africa is very different! In the UK insurance, a licence, road tax, lights, a steering wheel and a windscreen are unfortunately not optional. That said speeding in South Africa is quite a lot cheaper than it is in the UK and it seems you can “undertake” here, on the hard shoulder. I am pretty certain however that reversing on a motorway is not allowed in the UK and sadly we only have one fast lane.
I am impressed with taxi drivers’ efforts to reduce their carbon footprint by keeping the number of vehicles on the road to a minimum………..on a recent drive to Cape Town I was overtaken by a taxi and noticed all the passengers on one side with their arms out the windows carrying a gate as long as the vehicle, thereby avoiding the need for a separate delivery van…..brilliant!

The Braai is clearly a national treasure and possibly my favourite part of South African social culture. I find it amazing that a braai is planned weeks in advance. In the UK a “barbeque” is usually thrown together with just a few minutes notice, as soon as a weather window opens and it is usually over just as quick when the rain puts the fire out! I recall clearly my very first braai in South Africa at which my now father in law explained to me that a “skilpaadjie” was a small tortoise. After a lengthy conversation about how to remove a tortoise from its shell six of them went on the coals and I prepared myself to eat a household pet, being keen not to offend. A great laugh was had at my expense and they never cease to remind me when “tortoises” are on the menu!

Afrikaans is still a challenge but I am doing my best to learn and keep pace with the progress of my eight year old daughter. I do now understand more than half of most conversations (I think!) unless it is late in the evening around the braai and those around me have been “lubricated” by brandy and coke! When it comes to pronunciation I really do struggle, as evidenced by my efforts on 24th December last when I wished the rest of the office “a happy cheese festival”.

South Africa is very different to what we are used to as a family and it comes with plenty of reasons to love it and some not to love it quite so much but at the end of the day for us right now it is home and we choose to embrace and enjoy everything good it has to offer.
When asked what is so special I pause for a second and recall the words a local shared with me shortly after we arrived………… ”AFRICA HAS LIFE”

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Die vlug na Sydney

2011-12-01T15:06:00.004+02:00

Ja, die kinders het gevlug… party vir die politiek, party vir die misdaad en party net van die besige lewe… Jy kan nie jou lewenstyl verander waar jy is nie, nee, te veel verwagtinge, te veel sekuriteit, te veel gemak… nee, as jy wil verander aan jou lewenstyl moet jy jouself regmaak vir ‘n “total make-over”. Hello Sydney! My nuwe begin, my nuwe lewe!

Maar hierdie gaan nie oor die vlugtelinge nie, nee, hierdie is vlug SA7700 (operated by Quantas) Dit is ongelooflik om net te sit en kyk na almal op hierdie vlug. Ons vlieg natuurlik ekonomiese klas, Jy herken die karrakters… die ouens met die “JEEP” hemde is die “khaki brigade” van 10 jaar gelede… stoere boere.. sing Nkosi in Afrikaans….

Dan is daar die lot op LSD.. nee, nie op wit poeier of pille nie… Look, See, Decide. Jip, hulle is die lot wat giggel oor alles… wat “The Australian” lees … en met almal op die vlug gesels, soek redes hoekom AUZ en redes hoekom nie meer uit die “Blou van onse berge” nie…
Ek geniet die “babyboomers” die meeste. As hulle kinders nie na Sydney “gevlug” het nie, sou hulle sekerlik nooit op enige ander plek vakansie gaan hou het as Badplaas of Chipees nie… Ook hulle is in twee kategoriee… Die op hulle eerste vlug na die verre vreemde… hulle geld is stewig om hulle middel in “a money belt”, doen al die oefeninge soos voorgeskryf om swelling te voorkom en hulle nuwe “gemaklike” klere pas nie by hulle onseker gesigte nie… Dan is daar die “frequent flyers” – die oueres van dae wat vir ‘n tweede of derde keer vir die kinders gaan kuier… deel graag raad uit, vol self versekering en ondersteuning, maar vol verwagting om die kinders en kleinkinders weer te sien.. oupa en ouma kom kuier!

Die tranerige families of die rooi dikgehuilde oe is die nuwe emmigrante, vir die eerste keer op pad na die vreemde, en moes nou net finaal van die familie en vriende afskeid neem. Emmigrasie is nie maklik nie, ten spyte van die nuwe avontuur wat voorle moet jy die emmosionele bagasie van die afskeid met jou saamdra.

Daar is net een swart person op die vlug, en hy sit langs my… Ek kan my nuuskierigheid nie meer inhou nie en vra waar kom hy vandaan… Zimbabwe! ( Die buurland wat meeste van die Suid Afrikaanse emmigrante se grootste rede vir emmigrasie is) Ek assosieer hom sommer met sy president en kry so ‘n warm gevoel onder die kraag. “ Nou waarom vlieg jy Sydney toe” wil ek verder weet… “I’m attending a Deliverance conference, we’re trying to raise money for orphaniges in Zimbabwe” is die skugter antwoord. Sy laptop lyk of hy saam met die man deur die burgeroorlog is. Sy voorlegging begin speel… ek het ‘n knop in my keel…. Kinders bly kinders… honger bly honger. Ek kyk na die gesiggies en besef dat hulle het nerens om heen te vlug nie, daar is nie vir hulle ‘n vlug na Sydney toe om ‘n beter lewe te gaan probeer skep nie, hulle probeer net vandag oorleef.

Ek sit terug, sluit my oe en dank my hemelse Vader vir sy genade vir my… dis al wat ek het…GENADE

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'n Boer maak 'n plan

2011-11-21T17:17:00.000+02:00

A while ago, while holidaying in Hermanus, I asked an old school friend who now lives in London ... "How come so many South Africans who've left the country end up successful, having moved to a strange country". He put down the Castle which he was drinking from the bottle and replied "Easy ... 'n boer maak 'n plan"

I just loved hearing the expression and reminded myself - you can take the boy out of South Africa, but you can never take South Africa out of the boy! The real reason for success however lies in the fact we're an honest, proud and hardworking nation - and a curious bunch.

People don't leave here thinking the grass is greener on the other side, for there are few countries in the world offering a greener life than sunny South Africa. Irrespective of the reason for leaving they know there are both challenges and adventures out there! They also know there are many opportunities, ready for the picking. All one has to do is to bend down to pick them up!

And therein lies South Africans' success - we'll do whatever it takes get to the top. It's in our genes to be innovative and forward thinking. Real go-getters, great at successfully reinventing ourselves, making our nation proud and adding value to the lives of others.

The one invention we're all passionate about? We're constantly practicing, perfecting and enjoying the art of braaing ...

My friend loaded the boerie on the braai, opened another Castle, put his bare feet up while calling out to his son "How many cray's you guys pulled today Boetie?". Looked at me he said "You know what? We're really privileged - we live the best of both worlds"

I thought to myself once a South African ...

Emigration is not for the faint hearted…

2011-10-26T16:05:00.000+02:00

Emotionally as well as financially, emigration is tough!

It is not only difficult to leave the family and friends behind; it is also tough to handle the guilt trips people dump on you. This can range from “you’re not a Christian if you emigrate due to security” to “you’re a racist” or “we’ll stay behind until the end, you run…” The fact is, we just want to do what is best for our family, no hidden agendas!

Strangely, over the last couple of years, sentiment has changed a great deal. So many people have told us that we are fortunate the have the opportunity and given the chance, they would do exactly the same! It still doesn’t make it easy.

There are so many uncertainties – how does the school system work? – will we be able to fit in their culture? – will we be able to maintain a good standard of living?

Talking about standard of living, what will our retirement look like? Luckily legislation changed two years ago and one can now withdraw your South African retirement annuity before the age of 55. In Africa nothing comes easy, and this process can feel worse than a bad year at the dentist. The documents you’ll be required to submit at SARS are: Tax clearance certificate, Tax directive, Proof of migration (of your tax status, not your citizenship), supporting documents, etc. You also need a blocked account and assistance with the forex transaction.

It just makes sense to get a professional to assist you in withdrawing your money from your South African retirement annuity. This person or institution should however be a tax specialist (for example a chartered accountant) as well as a registered financial planner in order to assist you with the tax issues involved as well as your insurance issues (retirement annuity, life policy, endowments, shares, etc). It also makes sense that these professionals have a South African footprint. A presence to sort matters out with SARS on a face to face basis is essential. Did I mention that the Reserve Bank must recognise your migration? Whew!!

Taking enough money with you when you are emigrating helps sort out many of the uncertainties, therefor you need to take all that you can. One of the reasons why you should take as much cash as possible with you is to give yourself the opportunity to manage your investments (and their return) which is very difficult to do if you are thousands of kilometres away from your investments.

Risks such as the strength of the currency as well as economic and political factors should also be taken in consideration.

Cashkows.com will take care of a lot of your headaches in the early withdrawal of retirement annuities in South Africa, one less uncertainty in your migration…

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South Africa: Taxation of Expatriates

2011-10-18T11:27:00.001+02:00

Have you ever wondered how you will be taxed in South Africa, especially since you have left the country and are now residing somewhere else in the world? We often get questions about this subject matter as most people more often than not, choose to ignore the subject as the mere thought of tax gives you a good reason to adopt the ostrich strategy (putting your head in the ground and hoping that you will not be seen).

The facts about your physical offshore status are however as follows:
Since 2001, residents (called 'ordinarily resident') are taxed on their world-wide income, but non-resident persons continue to be taxed only on their South African source income.
'Ordinary residence' is not defined in the law, but has been described as involving some continuity of residence, or as being the place where a person's belongings are stored, and to which he means to return.

Expatriates on assignment are normally classified as 'temporarily resident', which is equivalent to non-resident from a tax perspective, although there might come a point at which this could be challenged if roots start to go down too deeply.

On departure, an expatriate may take away his savings, but needs to confirm that he has not emigrated from South Africa before.

South African-source (taxed) income includes earnings from employment, remuneration for services rendered in South Africa, rent from property assets located in South Africa, and interest from loans applied or used in South Africa. Dividends however are not taxed in the hands of a South African natural person

A person is resident in South Africa for tax purposes if he or she:
• spends 183 days or more in the country;
• is “ordinarily resident” in the country (i.e. has a permanent dwelling in South Africa, or has close family, business or social ties with South Africa); or
• is physically present in South Africa for more than 91 days in each of the current and the previous five tax years, and is physically present in South Africa for a period exceeding 915 days in aggregate.

So be aware and take note how you will be taxed in South Africa:
Resident individuals are taxed on their worldwide income; non-residents are taxed on their South Africa-sourced income only.

A good reason to consider your tax residency status in South Africa!

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Timing financial markets

2011-10-18T11:02:00.005+02:00

At cashkows.com we’ve been receiving more and more enquiries over the past few months from South African expats around the world who want to surrender retirement annuities but are unsure about timing given the recent volatility in financial markets and also, but perhaps to a lesser extent, the Rand.

It is of course important to factor in these things when making your decision, however as any financial expert worth their salt will tell you, trying to “time the market” is a mugs game. If you look at data collected over the past 75 years it demonstrates clearly that no one can predict with accuracy and consistency, which way stock prices are headed. It doesn’t matter whose results you study – hedge fund gurus, mutual fund managers, academic researchers or even fortune tellers – they’re all guessing in one form or another and sooner or later their “theories” come undone.

That said, at cashkows.com we recognise and respect that fact that you want to have control over timing, when it comes to surrendering your policies and we have designed our process to provide you with exactly this: with us you decide when your policy is surrendered and you decide when the proceeds are converted from South African Rand to your local currency.

Before you may take either of these steps however it is essential to first record your emigrant status with the South African Reserve Bank - a process that cashkows.com is happy to facilitate on your behalf, retrospectively. As it takes between four to six weeks to record such status we recommend that you set the process in motion without delay as this will ensure that you are in a position to take action, from the earliest date possible. In short – emigrate, take stock (excuse the pun) and then surrender policies in your own good time.

Once your policies have been surrendered the proceeds can remain in your “blocked” account in South Africa until again, you decide the time is right to convert and transfer funds to your local bank account.

It is also perhaps worth mentioning that for those of you who are proposing to reinvest policy proceeds in your local currency, market volatility should not affect you provided that the switch between investments is actioned quickly. In fact the current economic situation may present an opportunity as the costs associated with switching between investments will be reduced when working on a lower base value.

If you are currently in the process of extracting and repatriating policy proceeds, or if you are considering engaging our services please do not hesitate to contact us if you have any questions around the issues covered in this article….we here to help you.

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There’s no place like home

2011-09-29T15:52:00.004+02:00

“There’s no place like home… there’s no place like home…” The immortal words of Dorothy in The Wonderful Wizard of Oz, and never a truer word has been spoken. Whether home is in a quaint little tourist town on New Zealand’s South Island, a bustling metropolis in the US of A, a charming village in the English midlands, a laid back town on the Australian east coast, a chic-slick suburban setting in Canada or nestled on the southern tip of Africa there really is no place like home.

Funny thing is though, the exact location of where home is has become less significant than it used to be and certainly easier to adapt to than say, 50 years ago. Imagine living where you do now without email, the internet, Skype, TV, movies, big sports events, low cost airlines, laptops or cellphones? Some may argue that we would be living in a better world but the fact remains that technology has eased the challenges associated with living far from your place of birth.

There is a common thread that runs through all of us – and I use the word us loosely. The us that I speak of is the South African in us, but this could be the same for any society. The thread that makes us South African is woven from the fabric of knowing what a real braai smells like, of people who remember David Karmer’s rooi vellies, and his Agg please daddy won’t you take me to the drive-in, of biltong and chops, blatjang and potjies, it’s about understanding “eish”, “lekker” and “shweet bru”, knowing what “just now” means and remembering when Naas was Baas. It’s about recalling sunny skies and Chevrolet, Gerrie Coetzee, Michael de Morgan and Die Man van Staal. Having a connection to all of these things is what makes us South African, not where we live.

The fact is that no matter where you live in the world, you can easily tug on some of the common thread that makes us all us thanks in large to technology. Home is where the heart is and the things that remind me of being South African are never far from my heart.

Have a lekker day!

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