Q. Why should I engage the services of CashKows?

A. Cashkows (Pty) Ltd is a licensed financial services provider in South Africa, No. 42872: when it comes to financial matters it is very important that you are afforded the necessary consumer protection to safeguard against improper conduct by your financial services provider. Cashkows (Pty) Ltd is licensed and authorised through the Financial Services Board, a regulatory body in South Africa which provides you with the right of recourse should we not comply with the Financial Advisory and Intermediary Services Act.

It is important to note that you will not have such protection if you engage the services of a provider who is not suitably licensed and authorised to conduct business of this nature.

Q. Do CashKows take control of my funds within the process?

A. No, at no point within the process do CashKows have control over your funds. We facilitate the process to surrender your policies and transfer the proceeds to your bank account overseas, via your "blocked" account in South Africa.

Q. Can you advise me if I should surrender my paid up annuity or leave it to run until maturity?

A. This is entirely up to you however we will provide you with as much information as possible to ensure that you can make as an informed decision as possible. Obviously you will need to factor in the advantages of having a lump sum in cash now, to use as you like against the potential benefits you will receive at retirement age. You are encouraged to consult with your financial planner in your country of residence in order to make informed decisions regarding your personal financial planning

Q. How secure is the information which I provide to you?

A. CashKows place security at the top of our list when engaging with customers. We do not share your information with any third party apart from those directly involved within the encashment process. The information which you provide to us is treated with the utmost discretion and security. The cashkows.com web site is SSL Thawte Security Certified.

Q. Do I incur penalties if I decide to surrender?

A. For certain products there may be penalties applied upon early surrender. We will advise you in advance of all penalties and fees payable so you are in the position to make an informed decision as to whether you surrender or not.

Q. How long does it take?

A. As a general guide the whole process should take between twelve and sixteen weeks to complete.

Actual timing depends upon a number of factors some of which may only come to light as the process moves forward.

In all cases an active up to date tax record with SARS is essential. Where required cashkows.com will temporarily reactivate your South African tax record and submit outstanding returns. Please note however that the standard processing time of SARS to reactivate a tax record is four weeks.

The application to record your emigrant status with the South African Reserve Bank must be submitted via an “Authorised Agent” which is essentially a bank approved for the purpose by the South African authorities. In the vast majority of cases the process will take between six and eight weeks from the date of submission however with certain Authorised Agents it can take significantly longer. This time frame includes the process to open the essential "blocked" account, for exchange control purposes, where required.

The surrendering of your policies and transfer of the proceeds will take approximately four weeks with the majority of insurers however there are certain companies whose internal processing time in this respect can extend to eight weeks. This timeframe includes the process to obtain an essential tax directive from SARS for each individual policy you hold.

Q. Do I have to formally emigrate from South Africa to access my retirement annuity?

A. Yes. Without acquiring emigrant status it is not possible to surrender your retirement annuity policies. You are however able to access cash values on any other policies, without formal emigration. We can assist you to access these cash values as well.

Q. Does formally recording my emigration from South Africa mean I lose the right to return to South Africa?

A. No, emigration is essentially your "formal financial exit" from South Africa. By recording such status you do not relinquish your South African citizenship and can retain your South African passport.

Q. Does formally emigrating from South Africa provide me with any additional benefits?

A. . It may do, depending upon your individual circumstances: for example, as an emigrant you can freely remit abroad South African source inheritance, provided that your emigration was recorded prior to the testators’ death. If you are the beneficiary of a South African estate and have not emigrated prior to the date of death you must make special application to the South African authorities in this respect and there is no guarantee it will be granted.

As an emigrant you can also freely remit abroad all passive income derived from within South Africa. This includes dividend payments, bank account interest and rental income.

Q. What should I do with the proceeds?

A. It is entirely up to you what you do with the proceeds however we do offer a wide range of interesting investment options that you may wish to consider, or we can introduce you to one of the carefully selected financial planners in your area with whom CashKows has a relationship.

We can also arrange for an offshore bank account to be opened in your name which may be considered from a tax planning perspective.

Q. What documentation do I have to complete to formally record my emigration in South Africa?

A. The formal emigration process requires a significant amount of documentation which CashKows will compile and pre-populate on your behalf to keep the hassle factor, for you, to a minimum. The two key documents required within this process are:

• Form MP336(b) This contains details of your assets and liabilities and is submitted to the South African Reserve Bank (SARB) via an authorised agent in South Africa.
• Tax Clearance Certificate This is issued by South African Revenue Service (SARS) and must submitted to the SARB along with form MP336 (b). SARS will only issue the certificate of your record with them is active and up to date.

Q. If I hold a passport issued by the authorities in my new country of residence does this mean I have formally emigrated from South Africa and as a result can access my retirement annuities?

A. Not necessarily. Whilst you may have satisfied the immigration requirements of your new country of residence, your emigration (exit) from South Africa must be formally recorded with both SARB and SARS before you can access funds held in your retirement annuities.

Q. How is it now possible to surrender my retirement annuity?

A. This is best answered by making reference to the relevant section of the Income Tax Act:
"That a member who discontinues his or her contributions prior to his or her retirement date shall be entitled to the payment of a lump sum benefit contemplated in paragraph 2(b)(ii) of the Second Schedule where that member emigrated from the Republic and that emigration is recognised by the South African Reserve Bank for purposes of exchange control..."

Q. If I am not South African but lived in South Africa for a period of time and contributed to retirement annuities can I surrender the policies and extract the proceeds?

A. Yes, if you were previously resident in South Africa and contributed to retirement annuities and other insurance policies it is possible to surrender the investments and expatriate the proceeds. The route to do so is determined by a number of factors, including the length of time you were resident in the country.

Q. What is a blocked account?

A. A blocked account is a standard bank account to which regulatory restrictions have been applied for exchange control purposes. An account takes on blocked status after your emigration status has been recorded with the South African Reserve Bank. Whilst restrictions are applied to a blocked account you can freely remit the likes of dividend payments, bank account interest and rental income via the account to your local account overseas.

Q. Do I need to have permanent residence in my new country in order to emigrate from South Africa?

A. No, it is possible to record your emigration from South Africa whatever your residential status in your new country.

Q. What happens if I formally emigrate from South Africa and then decide to return permanently?

A. This depends upon timing. If you return more than five years after having emigrated, you will be considered as a new immigrant to South Africa and will need to provide documentary evidence of your right to permanently reside in South Africa. You will also be required to declare your foreign assets and liabilities to the South African Reserve Bank.

If you return within five years of having emigrated, the South African Reserve Bank will deem your emigration as having failed to materialise.

In each case you will need to make application to the South African Reserve Bank to unblock assets that were blocked when you departed.

Q. What options do I have with my retirement annuity if I leave it until maturity?

A. When your retirement annuity matures you have the following two options:

• Record your formal emigration from South Africa and extract the full value of your retirement annuity, less tax: this is the same process you undertake if you decide to encash your policy in full, now. Please note however that this option assumes prevailing tax legislation will afford the opportunity when your policy matures.
• Extract up to a maximum of one third of the fund value as a lump sum in cash, the first R315 000 of which is tax free. Under legislation relating to this type of policy a minimum of two thirds of the fund value must be reinvested in an annuity to provide an income. To exercise this option you will require an active bank account in South Africa and an active SARS tax record. You will also need to obtain the necessary clearance to move funds overseas.

Q. If I have already formally emigrated from South Africa what is the process?

A. Where a client has already placed their emigration on record with the South African Reserve Bank the following will be required in order to take the process forward:

• An active up to date SARS tax record.
• An active "blocked" bank account.
• Copies of all documents pertaining to your emigration: MP336(b) stamped and approved by the authorised agent in South Africa , SARS tax clearance certificate for Emigration Purposes, confirmation of your emigrant status from the South African Reserve Bank and confirmation of your "blocked" account.

Once the above is in place we can proceed with the encashment process in the same way that we would if we had facilitated your emigration. If you cannot address any or all of the above requirements we can assist you to obtain same.

Q. I think I have already emigrated - how do I confirm my status?

A. Firstly, it is important to point out that formal emigration from South Africa is NOT the same process you undertook when making application to the authorities in your new country, to reside therein. If you have formally emigrated from South Africa you should have:

• Completed SARB form MP 336(b) with details of your South African assets including your retirement annuities.
• A letter from your bankers in South Africa confirming the existence of a "blocked" account in your name.
• A tax clearance certificate for emigration purposes from the South African Revenue Services.
• Confirmation, in writing from the South African Reserve Bank that your emigrant status has been recorded.

It is possible for us to engage with your previous bankers in South Africa and the South African Reserve Bank to ascertain and verify your emigrant status in South Africa.

Q. How are SARS involved in the process?

A. Without addressing the requirements set by SARS it is not possible to surrender your policies and repatriate the proceeds. Only when you have an active and fully up to date tax record will SARS issue the essential tax clearance certificate which must be submitted along with your emigration application. It is also necessary to engage with SARS when surrendering your policies in order to obtain the essential tax directive for each individual policy, which allows the insurer to release funds.

Q. My SARS tax record is inactive – what should I do?

A. It is essential to have an active up to date tax record with SARS in order to surrender your policies and repatriate the proceeds. Where required we will arrange the reactivation of your tax record on a temporary basis.