TCS applications in respect of emigrant’s remaining assets (formerly known as blocked funds)

What is it?

In terms of the SARB exchange control regulations, this is when a taxpayer has formalised emigration with SARB. The taxpayer will be regarded as non-resident by SARS. All remaining assets are then duly brought under the control of the authorised dealer in a ‘Emigrant’s Remaining Assets’ formerly known as blocked funds / blocked account.  

What is it for?

If a taxpayer wants to transfer funds abroad from his blocked account the requirement will be to complete a Tax Compliance Status (TCS) application in respect of FIA which will state that the amount is ‘Emigrant’s Remaining Assets’.

Top Tip: Any ‘Emigrant’s Remaining Assets’ application in respect of FIA must ensure that the ‘Source of capital to be invested’ is indicated as ‘Emigrant’s Remaining Assets’.

The TCS request for emigration is solely for taxpayer wishing to emigrate and thus require a TCS in respect of emigration to formalise emigration with SARB. This process is only done once, which means, TCS in respect of emigration along with the TCC certificate is only issued once upon emigration. 

What do I need to do?

With this in mind, the following steps needs to be followed:

• Taxpayer who wishes to emigrate:
  • Taxpayer request a TCS in respect of Emigration.
  • SARS will only proceed with the review of the Emigration application where it is a first time emigration application.
    
• Taxpayer who has already emigrated and wishes to transfer ‘Emigrant’s Remaining Assets’:
  • Taxpayer requests a TCS respect of FIA and set the ‘Source of capital to be invested’ to ‘Emigrant’s Remaining Assets’.
  • If the Emigration TCS was used for the purposes of ‘Emigrant’s Remaining Assets’, SARS will decline the request.