Bloomberg News reports that SA’s plan to attract more professionals to its skills-starved economy through the introduction of a so-called nomad visa for remote workers has been slowed by the need to amend tax regulations.
President Cyril Ramaphosa announced his intention to introduce a remote-working visa in his 2022 state-of-the-nation address. There was an initial delay when changes to the visa regime had to be temporarily withdrawn because mandatory public consultation procedures had not been followed. Department of Home Affairs (DHA) Minister Leon Schreiber explained the new impediment: “There is just a tax-related matter that needs to be addressed in the regulations. Once that is done, the department will commence with the rollout,” The DHA initially proposed allowing people employed and paid by companies elsewhere to live in the country for as long as six months a year without paying tax, as long as they earned at least R1 million annually. SA’s byzantine work permit regime, which means that securing a work permit can take well over a year, has been flagged as a hurdle to economic growth by both the Presidency and the country’s main business organisations. Still, a backlog of more than 300 000 applications for all kinds of residence permits has been halved since the new cabinet was announced on 30 June after the formation of a coalition government.
- Read the original of the short report in the above regard at Fin24
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