Proposed work visa changes from the Department of Home Affairs look to be setting up South Africans working overseas with a raw deal – and may end up convincing many of them to permanently cut ties. This could then create an even bigger tax headache for the South African Revenue Service (SARS) which is already under pressure to collect as much tax as it can to help plug the country’s growing budget deficit.
Proposed work visa changes from the Department of Home Affairs look to be setting up South Africans working overseas with a raw deal – and may end up convincing many of them to permanently cut ties. This could then create an even bigger tax headache for the South African Revenue Service (SARS) which is already under pressure to collect as much tax as it can to help plug the country’s growing budget deficit .
According to legal experts Bronwin Human and Delano Abdoll at Tax Consulting South Africa, the key issue lies in how the new proposed remote work visa will function in terms of taxes., South Africa’s Immigration Regulations will be changed to allow foreign workers in South Africa to work for foreign companies on a ‘digital nomad’ visa for a period of six monthsIn contrast to this, the legal experts noted that any South African expatriate working abroad has to pay full tax on their earnings over R1.25 million, as well as being subject to onerous tax administration requirement
Work Visa South Africans Tax Department Of Home Affairs South African Revenue Service Budget Deficit