Andrew Stegmann
,

South Africans Are Reducing Stress and Saving Money By ‘Semigrating’ Due to New Remote Work Structures

As more workers switch to remote working during lock-down, a growing number of South Africans are looking to emigrate out of major towns and cities says Chas Everitt International property group.

Everitt said that many more people and companies have had to switch to remote working mode to survive and have realised that:

  • It is much easier than they thought;
  • It does not necessarily mean a drop in productivity; in fact, people are often more productive when working from home;
  • Many types of work lend themselves to working remotely on a permanent basis – and from wherever one prefers to live.

“We are thus not surprised that more employees as well as executives are now seriously exploring the idea of moving away from a big metro to a smaller town or an estate in a more rural area,” said Everitt.

“This pandemic has been a wake up call for many people and families who are now seriously reassessing their priorities, and seeking ways to make permanent changes to achieve a lifestyle that is less rushed and stressed, and we see this reflected in a significant increase in enquiries for country homes.”

In keeping with international trends, however, Everitt said that most do not want to relocate to another province or region, but just to a small town or estate that offers the possibility of a quieter life and is still within a couple of hours’ drive of their origin city – particularly if their friends or family members still live there.

The City of Cape Town is the most expensive metropolitan area in South Africa for rental prices. Many simply cannot afford to live in the city anymore, and are seeking homes elsewhere now that they have the freedom to work from home, alleviating much financial stress.

Everitt said the areas that could be prime targets for this process of “de-urbanisation” in South Africa are:

  • The Cape West coast;
  • The Winelands;
  • The Garden Route;
  • The Little Karoo;
  • The North Coast of KZN;
  • Hartebeespoort;
  • The Vaal;
  • Lanseria;
  • The Waterberg in Limpopo;
  • Towns in Mpumalanga close to Mbombela and the Kruger National Park.

Everitt said that not all towns in these areas will immediately benefit from this trend.

He said those areas that can attract the “de-urbanites” with good municipal management, reliable power and water supplies, reliable and fast internet connectivity, reasonable proximity to an airport, good shopping and medical facilities and good schools if they have children will prosper most.

Looking at the type of properties these new semigrants are likely to buy, he said, there is already high demand among affluent buyers for homes in out-of-town lifestyle estates.

These include Val de Vie, Pearl Valley and Boschenmeer in the Wineleands, for example, as well as the golf estate in Mossel Bay, the estates at the Vaal and around Hartebeespoort and the high-end estates along the KZN North coast such as Zimbali, Simbithi and Mount Edgecombe.

“We expect to see rising demand for ordinary freehold homes and whatever apartments may be available in and around various small towns – and possibly also for smallholdings where young families can keep horses or some livestock, go off-grid and grow their own food if they wish.”

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

Andrew Stegmann
,

Possible Changes to South African Drinking and Cape Town Smoking Legislation

Cape Town’s buildings could soon be 100% smoke free

The City of Cape Town continues its campaign to address the country’s tobacco use and are working with the Bloomberg Partnership for Healthy Cities to promote a 100% smoke-free environment for all. This works in conjunction with the new National Tobacco Bill that may soon be instated, which aims to  effectively outlaw smoking in any public spaces.

The bill also includes amendments around stricter rules on where one is allowed to smoke; the inclusion of e-cigarettes under tobacco products; enforcement of plain packaging; the banning of tobacco products advertising at tills; and eliminating cigarette vending machines.

“The City of Cape Town was selected for Phase II of the Bloomberg Partnership for Healthy Cities. For this phase the City has elected to focus on Tobacco use and second hand smoke as the new National Tobacco Bill will be promulgated soon. The City of Cape Town wants to set an example for all residents in promoting a smoke free lifestyle and workplace,” said the Mayoral Committee Member for Community Services and Health, Councillor Zahid Badroodien in a statement.

The Partnership for Healthy Cities is a prestigious global network of cities committed to saving lives by preventing non-communicable diseases (NCDs) and injuries, supported by Bloomberg Philanthropies in partnership with the World Health Organization and Vital Strategies. It is a global network of 70 cities where mayors have committed to prevent NCDs – including cancer, diabetes, heart disease and chronic lung disease through proven interventions. The second phase of the Partnership launched in 2019.

City Health has integrated the Partnership for Healthy Cities opportunity into the larger Healthy Lifestyle Programme. In Phase I, City Health focused on reducing sugary drink consumption among the urban population.

“In Phase II, we are using similar tactics to create a smoke-free city. According to the South Africa Demographic and Health Survey, 25% of women and 42,9% of men in the Western Cape smoke daily. The goal is to create a smoke-free city through stakeholder engagement, education campaigns and review of internal City policy. The City of Cape Town will aim for as many of its buildings as possible to be compliant with the new workplace smoking policy post intervention,” said Councillor Badroodien.

Cigarette smoking is linked to the onset of all four of the most common non-communicable diseases: cancer, heart and lung disease, and diabetes. In addition to the high costs of treating diseases caused by its use, tobacco often kills people at the peak of their wage-earning capacity. This deprives families of their breadwinners, robs nations of a healthy and productive workforce, and contributes to the cycle of poverty that exists in many countries. It threatens global development.

City Health, together with multiple internal and external partners, has developed a three pronged approach to address tobacco use:

1. Policy Changes:
City Health and Human Resources, together with the policy unit, have updated the City’s smoking in the workplace policy. This new document is a framework which aims to discourage smoking, as well as protect non-smokers, while environmental Health will also play a role in monitoring compliance to this framework.

2. Increased enforcement of Tobacco Legislation:
Environmental Health, and other City departments, have ramped up enforcement of tobacco legislation within the City. Gaps in law enforcement were identified and roles and responsibilities are being defined. During the festive season activations were held at road blocks and beaches to educate the citizens on the harms of tobacco use.

3. Media Campaign:
City Health is creating a tobacco awareness campaign, which is both internally and externally focused. The aims of the campaign are to advertise that the City is going smoke free and to educate the community about the harms of second hand smoke.

‘Recent events have forced many people to stub out the habit, but many more are struggling to give up cigarettes as evidenced by the exorbitant prices they were willing to pay for cigarettes. We realise it’s not easy, but the City is doing as much as it can to assist employees and residents to stop smoking,’ added Councillor Badroodien.

Cape Town, South Africa

Liquor Amendment Bill could change SA legal drinking age

To increase efforts in better managing the country’s alcohol-related issues, the Democratic Alliance is pushing for government to pass the Liquor Amendment Bill which will change South Africa’s drinking laws significantly.

This particular bill has been stuck in cabinet for a number of years and many, including DA’s Dean Macpherson, feel the bill has the potential to better regulate alcohol in South Africa and reduce the damage caused by excessive consumption.

According to the South African Medical Research Council (SAMRC), a serious multi-structural plan is needed to pull South Africa out of its alcohol problems. Citing data from 2015, the council showed that up to 282 adults die as a result of alcohol consumption per day in South Africa, between 27 000 and 103 000 people a year.

The SAMRC continued that a concerning trend of binge drinking has become notable in South Africa
“Almost 6 out of 10 adolescent and adult drinkers engage in heavy binge drinking: 70.8% of male and 33,7% of female drinkers, higher than both the regional and global averages,” their report stated.
The country is also ranked as one of the worst in the world for drunk driving. SA’s road traffic fatality rate is more than 33 per 100,000 population, this is almost double the global average. Research also shows that drunk driving accounts for 27.1% of fatal crashes in SA each year.

If instated, the bill will:

-Push the legal drinking age to 21

-Introduce a new 100-metre radius trading limitation around educational and religious institutions

-Ban the advertisement of alcohol on social and small media

-Introduce a new liability clause of booze-sellers

Mbalula says no one should be getting behind the wheel of a car with any alcohol in their system as the Road Traffic Amendment Bill was introduced in parliament in June 2020, which effectively introduced a 0% alcohol limit for all motorists.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

Andrew Stegmann
,

Financial Emigration: Changes to the Withdrawal of Retirement Funds in South Africa

This information was provided to us courtesy of JJ Accounting Services Mauritius.

The draft Taxation Laws Amendment Bill (“TLAB”) was published on 31 July 2020. As announced in the Budget Speech, any South African leaving in future will be subject to a much stricter process from 1 March 2021 onwards.

The amendment comes as no surprise, as government made its intentions clear in the February 2020 Budget Speech, per Annexure C to the Budget Review: “As a result of the exchange control
announcements in Annexure E, the concept of emigration as recognised by the Reserve Bank will be phased out. It is proposed that the trigger for individuals to withdraw these funds be reviewed”.

Current position

Under the current dispensation, taxpayers may withdraw their retirement funds prior to their retirement date, upon emigration for exchange control purposes, where such emigration is recognised by the South African Reserve Bank. This concession is provided for in the respective definitions of “pension preservation fund”, “provident preservation fund” and “retirement annuity fund” (collectively referred to as “retirement funds”) in section 1 of the Income Tax Act No. 58 of 1962 (“the Act”). Each definition makes provision for withdrawal where a person “is or was a resident who emigrated from the Republic and that emigration is recognised by the South African Reserve Bank for purposes of exchange control”.

In essence, the above proviso permits a person to withdraw his retirement benefit upon completion of a process of emigration through the South African Reserve Bank.

Proposed amendment

The proposed amendment follows the February 2020 Budget Speech, where the government made its intentions clear to overhaul this process as part of the modernisation of its exchange control system, as stated in Annexure C to the Budget Review: “As a result of the exchange control announcements in Annexure E, the concept of emigration as recognised by the Reserve Bank will be phased out. It is proposed that the trigger for individuals to withdraw these funds be reviewed”.

The TLAB, specifically paragraphs (h), (k) and (m) of section 2(1), gives effect to this decision, by amending the proviso to the aforementioned definitions in section 1 as follows: “is a person who is [or was] not a resident [who emigrated from the Republic and that emigration is recognised by the South African Reserve Bank for purposes of exchange control] for an uninterrupted period of three years or longer” (emphasis added).

In other words, reference to the emigration process is substituted with a new test that requires a person to prove they have been non-resident for tax purposes for an unbroken period of at least three years. This new test will apply from 1 March 2021. How this must be proved other than ‘financial emigration’ remains unclear at this stage.

Practically, as from the effective date of 01 March 2021, retirement benefits will be locked in South Africa for at least three years. The proposed amendment signals a big policy shift from a fiscal perspective, but this is one piece to a bigger puzzle that should have those who seek to emigrate on high alert.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

Andrew Stegmann
,

Updated Level 2 Lock-down Rules for South Africa: Flights, Home Affairs, Transit, and Weddings

Government has gazetted a number of directives which clarify and update a number of rules around the country’s move to a level 2 lock-down.

This includes changes around events such as weddings, rules around travelling as well as a new list of services which will be offered by Home Affairs.

These changes are outlined in more detail below.

Home Affairs services

Home Affairs minister Aaron Motsoaledi has confirmed that the following additional services will be available at Home Affairs offices during the level 2 lock-down:

  • Applications for first issue of Identity Card or Green Barcoded Identity Documents;
  • Applications for Identity Cards or Green Barcoded Identity Documents by persons who have been issued with a Temporary Identity Certificate during the national state of disaster, which certificates have expired;
  • Applications for amendments of personal particulars;
  • Applications for rectification of personal particulars;
  • Back Office records retrieval services.

The directive also states that all temporary identity certificates issued during the period of the national state of disaster that have not yet expired on the date of commencement of this Directions, are hereby extended up to 31 October 2020.

Weddings and other events 

Tourism minister Mmamoloko Kubayi-Ngubane has published a new directive clarifying the rules around weddings and other events.

The regulations state that attendance at a venue for a wedding, exhibition or any other function is limited to 50 persons and all hygienic conditions and physical distancing measures must be adhered to, for the limitation of exposure of persons to Covid-19.

The directive further states that the person organizing the wedding, exhibition or function and the owner or manager of the venue must ensure compliance with the requirement relating to physical distancing of at least one and a half metres and the wearing of a cloth face mask, a homemade item or another appropriate item that covers the nose and mouth, by all attendees.

Other requirements include:

  • Set up screening stations at entrances to facilitate the screening of persons before entry;
  • Not allow access to a person who is not wearing a cloth mask, or homemade item that covers the nose and mouth or another appropriate item to cover the nose and mouth;
  • Ensure that every person wears a cloth face mask, a homemade item or another appropriate item that covers the nose and mouth at all times except when eating or drinking;
  • Ensure that every person sanitizes before entry;
  • Sanitize microphones and podiums after use by every person.

Flights 

Transport minister Fikile Mbalula has published a new directive indicating that domestic passenger flights are permitted at the following airports:

  • Bram Fischer International Airport;
  • Cape Town International Airport;
  • East London Airport;
  • George Airport;
  • Hoedspruit Airport;
  •  Kimberly Airport;
  •  King Shaka International Airport;
  •  Kruger Mpumalanga International Airport;
  • Lanseria International Airport;
  • Margate Airport;
  • Mthatha Airport;
  • OR Tambo International Airport;
  • Phalaborwa Airport;
  • Pietermaritzburg Airport;
  • Port Elizabeth International Airport;
  • Richards Bay Airport;
  • Skukuza Airport;
  • Upington International Airport.

The directive also confirms that all international passenger flights are prohibited, except those flights authorized by the Minister of Transport.

Public transport 

In a separate directive, Mbalula  confirmed that all long-distance intra-provincial and inter-provincial travel by private vehicles and public transport services are permitted.

  • Minibus, midibus or minibus taxi -type services are permitted to carry not more than 70% of their maximum licensed passenger-carrying capacity for long-distance intra-provincial travel and inter-provincial travel;
  • Bus services are permitted to carry not more than 70% of their licensed passenger-carrying capacity for long-distance intra-provincial and inter-provincial travel;
  • Bus, minibus, midibus, minibus taxi -type services, e-hailing services, meter taxis, shuttle services, chauffeur driven vehicles and scholar transport vehicles are permitted to carry 100% of their maximum licensed passenger capacity for short-distance travel;
  • Rail operations are permitted to carry not more than 70% of their licensed passenger capacity.

The directive also confirms that the transportation of liquor is now permitted.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].