South Africa Archives - Page 76 of 122

Countries South Africans Can Visit Without a Visa in 2019

Arton Capital, a provider of residency and citizenship solutions, has released its latest Passport Index – a system that ranks travel documents by the number of countries that can be visited without having to apply for a visa.

In a surprising shake-up, the United Arab Emirates has replaced Singapore as having the most valuable passport in the world.

Recently, four new countries were added to its visa-free list bringing the total to 167.

Singapore (167) and Germany (166) round up the top three, with the top of the list dominated by European countries.

While South Africa ranks 44th on the overall list, it has shown steady annual improvements – rising to 94 countries in 2018 from 90 countries at the end of 2017.

This number could increase even further in 2019 as the Department of Home Affairs plans to implement a range of visa changes to encourage foreign investment and travel.

South Africa is negotiating visa waiver agreements for ordinary passport holders with a number of countries, as well as simplifying visa requirements for countries such as China and India.

This may result in reciprocal arrangements which could see these countries lower the requirements for South African tourists.

Below is a list of the countries South Africans can currently visit without a visa.

Visa-free for 30 days

Angola
Costa Rica
Guyana
Lesotho
Panama
St. Vincent and the Grenadines
Antigua and Barbuda
Dominica
Haiti
Macao
Paraguay
Tanzania
Argentina
Dominican Republic
Honduras
Malawi
Peru
Thailand
Bahamas
Ecuador
Hong Kong
Malaysia
Philippines
Trinidad and Tobago
Barbados
El Salvador
Indonesia
Mauritius
Qatar
Tunisia
Belize
Eswatini
Ireland
Micronesia
Russian Federation
Uruguay
Benin
Fiji
Israel
Mozambique
Saint Kitts and Nevis
Vanuatu
Botswana
Georgia
Jamaica
Namibia
Saint Lucia
Venezuela
Brazil
Grenada
Kenya
Nicaragua
Singapore
Zambia
Chile
Guatemala
Kosovo
Palestinian Territories
South Korea
Zimbabwe

eVisa/Visa on arrival

Armenia
Ghana
Nepal
Togo
Azerbaijan
Guinea-Bissau
Oman
Turkey
Bolivia
Iran
Palau
Tuvalu
Cambodia
Jordan
Rwanda
Uganda
Cape Verde
Kyrgyzstan
Samoa
Comoros
Laos
Senegal
Cuba
Madagascar
Seychelles
Djibouti
Maldives
Somalia
Ethiopia
Marshall Islands
Tajikistan
Gabon
Myanmar
Timor-Leste

To view the interactive Arton Global Passport Index, click here.

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

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

South Africa

Load Shedding (Power Outages) in South Africa Explained

Written by Quintin Coetzee

Load Shedding Explained

Currently, South Africa has one major electricity provider – Eskom. Due to financial and maintenance constraints, Eskom has periods where it needs to shut off power delivery to areas, on rotation, during periods of maintenance, in order to prevent a full-scale blackout.

In a blackout, almost the entire country’s electricity would go out, and may take days to come back up again. It goes without saying that everything must be done to prevent this from happening, as the consequences would be dire. Hence the process of load shedding.

Various areas simultaneously have their power disconnected for a period of a few hours during periods of load shedding. When one group comes back online, another goes down, while Eskom manages delivery and performs necessary maintenance.

Load shedding does not occur every day in South Africa. Residents follow local news, apps, and city websites, in order to see if and when shedding will occur. The South African government says that it is developing long-term solutions to make load shedding a thing of the past, but until these become a reality, load shedding will be an unfortunate part of life for South Africans. This does not mean that people have to sit idly by while it happens, however. We have provided some information and tips below to help during periods of load shedding.

Load Shedding Stages

Load shedding may take place under a number of different stages, depending on the degree to which Eskom is short on power. The higher the stage, the more areas need to have their power turned off simultaneously. When load shedding is announced, the stage that applies is announced at the same time, and corresponding schedules need to be checked.

Stage 1: Requires load-shedding of up to 1,000 MW. Power outage periods (per neighborhood) last up to 2.5 hours.
Stage 2: Requires load-shedding of up to 2,000 MW. Power outage periods (per neighborhood) last up to 2.5 hours.
Stage 3: Requires load-shedding of up to 3,000 MW. Power outage periods (per neighborhood) last up to 2.5 hours.
Stage 4: Requires load-shedding of up to 4,000 MW. Power outage periods (per neighborhood) last up to 2.5 hours.
Stage 5: Requires load-shedding of up to 5,000 MW. Power outage periods (per neighborhood) last up to 4.5 hours.
Stage 6: Requires load-shedding of up to 6,000 MW. Power outage periods (per neighborhood) last up to 4.5 hours.
Stage 7: Requires load-shedding of up to 7,000 MW. Power outage periods (per neighborhood) last up to 4.5 hours.
Stage 8: Requires load-shedding of up to 8,000 MW. Power outage periods (per neighborhood) last up to 4.5 hours.

More information about the various stages can be found on the Eskom website here.

Area Schedules

It is a good idea to bookmark or print your schedule, so that you can check it easily. It is quite likely that your work is in a different load shedding area to your home, so it is advisable to check the schedules for both.

A popular app (for Android and iOS devices) that will notify you when it is your time for load shedding can be found here.

Eskom schedules can be found on the Eskom website here.

City schedules can be found on the websites of local municipalities:

Due to the Steenbras dam’s hydro-power system that feeds into the local grid, the City of Cape Town often manages to avoid Stage 1 load shedding.

Action Plan

There are some important things to consider if you may be caught up in load shedding. We have outlined a few below.

Keep flashlights, candles, and lighters in close reach to provide light when the power goes out. There are also battery-powered emergency lights available online, some of which charge during normal power delivery, and turn on automatically when load shedding begins.
Small supplies of battery power can be bought on the cheap these days. Examples are power banks to keep phones, routers, and laptops running. These can be bought easily from stores like Takealot and Loot.
Make sure your food and medication can stay cool in your fridge for a few hours during power outages.
Ensure you have sufficient gas in your car, as many stations are unable to pump during load shedding.
Ensure you have sufficient cash, as many card machines do not function during load shedding.
Consider methods of contact, as not all cellular towers have backup generators, and you may therefore not be able to make cell phone calls during load shedding.
Make sure that all electrical outlets have surge protectors. Power surges when electricity returns are rare, but if they do occur, they can severely damage items plugged into affected outlets. Considering the cost of surge protectors as compared to the value of items, such as TVs and computers, plugged into outlets, they are worth buying.
Plan your meals (a gas stove may help), showers (geysers should stay warm during single outage periods), and other daily activities around the load shedding schedule. Even if there is no planned shedding, it is advisable to get into a pattern around the schedule, as load shedding can begin at any time. It is a good idea to check the schedule for your city at the start of each day.
Check the batteries attached to any essential parts of your home and business, to be sure they are in working order as a backup if the power goes out. These items include gate and garage motors and alarm systems.
Consider investing in an inverter and battery backup system to keep preferred items on during outages. These range quite widely in price, depending on the desired amount of electricity generated, and can be bought from numerous online stores, as well as brick and mortar stores such as Makro and Game, or from specialized installation companies. A cheaper UPS may be able to keep your fiber CPE box (or 3G dongle) and router running during outages. Costs involved for getting completely off the grid (for example by using a solar power system) may be high, but doing so provides a comprehensive, long-term solution.

Businesses

It is important to note that, unlike Relocation Africa, which has a solar power system you can read more about here, many businesses in South Africa do not have backup power provision for when load shedding occurs. Even those that do may have periods when they switch over, during which they do not have a supply of electricity. This may mean that their employees may not have access to emails when servers are down, and phone lines may not work for inbound and outbound calls. Many supermarkets use backup generators to keep certain lights on, as well as continue to run fridges, so you should still be able to do shopping at certain stores when the power in the area is out. The only sites where load shedding does not occur are buildings deemed essential to the operations of the city as a whole (such as Parliamentary buildings, waste processing plants, and hospitals), and certain buildings in close proximity to those. All other businesses have to react to the outages in much the same way as South African residents do at home.

Sources: [1], [2]. Image sources: Frédéric Paulussen – Fredography [1], [2].

South Africa, Worldwide

15 Destinations South Africans Can Visit Visa-Free in 2019

Residence and citizenship planning company, Henley & Partners, recently published its Passport Index for 2019. With its citizens enjoying visa-free access to 101 countries in total, South Africa is the third highest African country on the index.

The number of counties is down from 102 in 2018, with South Africans now requiring a visa to enter Turkey – although this can be done through a simple online process designed to issue your visa within 48 hours.

Below are 11 countries South Africans can travel to visa-free right now.

1: Panama (Visa-free for 180 days)

Panama is a country on the isthmus linking Central and South America. The Panama Canal, a famous feat of human engineering, cuts through its center, linking the Atlantic and Pacific oceans to create an essential shipping route. In the capital, Panama City, modern skyscrapers, casinos and nightclubs contrast with colonial buildings in the Casco Viejo district and the rainforest of Natural Metropolitan Park.

2: Peru (Visa-free for 180 days)

Peru is a country in South America that’s home to a section of Amazon rainforest and Machu Picchu, an ancient Incan city high in the Andes mountains. The region around Machu Picchu, including the Sacred Valley, Inca Trail and colonial city of Cusco, is rich in archaeological sites. On Peru’s arid Pacific coast is Lima, the capital, with a preserved colonial center and important collections of pre-Columbian art.

3: Philippines (Visa-free for 30 days)

The Philippines is a Southeast Asian country in the Western Pacific, comprising more than 7,000 islands. Its capital, Manila, is famous for its waterfront promenade and centuries-old Chinatown, Binondo. Intramuros, a walled city in colonial times, is the heart of Old Manila. It’s home to the baroque 17th-century San Agustin Church as well as Fort Santiago, a storied citadel and military prison.

4: South Korea (Visa-free for 30 days)

South Korea, an East Asian nation on the southern half of the Korean Peninsula, shares one of the world’s most heavily militarized borders with North Korea. It’s equally known for its green, hilly countryside dotted with cherry trees and centuries-old Buddhist temples, plus its coastal fishing villages, sub-tropical islands and high-tech cities such as Seoul, the capital.

5: Thailand (Visa-free for 30 days)

Thailand is a Southeast Asian country. It’s known for tropical beaches, opulent royal palaces, ancient ruins and ornate temples displaying figures of Buddha. In Bangkok, the capital, an ultramodern cityscape rises next to quiet canalside communities and the iconic temples of Wat Arun, Wat Pho and the Emerald Buddha Temple (Wat Phra Kaew). Nearby beach resorts include bustling Pattaya and fashionable Hua Hin.

6: Macau (Visa-free for 30 days)

Macau is an autonomous region on the south coast of China, across the Pearl River Delta from Hong Kong. A Portuguese territory until 1999, it reflects a mix of cultural influences. Its giant casinos and malls on the Cotai Strip, which joins the islands of Taipa and Coloane, have earned it the nickname, “Las Vegas of Asia.” One of its more striking landmarks is the tall Macau Tower, with sweeping city views.

7: Hong Kong (Visa free for 30 days)

Hong Kong is an autonomous territory, and former British colony, in southeastern China. Its vibrant, densely populated urban centre is a major port and global financial hub with a skyscraper-studded skyline. Central (the business district) features architectural landmarks like I.M. Pei’s Bank of China Tower. Hong Kong is also a major shopping destination, famed for bespoke tailors and Temple Street Night Market.

8: Fiji (Visa-free for 120 days)

Fiji, a country in the South Pacific, is an archipelago of more than 300 islands. It’s famed for rugged landscapes, palm-lined beaches and coral reefs with clear lagoons. Its major islands, Viti Levu and Vanua Levu, contain most of the population. Viti Levu is home to the capital, Suva, a port city with British colonial architecture. The Fiji Museum, in the Victorian-era Thurston Gardens, has ethnographic exhibits.

9: Chile (Visa-free for 90 days)

Chile is a long, narrow country stretching along South America’s western edge, with more than 6,000km of Pacific Ocean coastline. Santiago, its capital, sits in a valley surrounded by the Andes and Chilean Coast Range mountains. The city’s palm-lined Plaza de Armas contains the neoclassical cathedral and the National History Museum. The massive Parque Metropolitano offers swimming pools, a botanical garden and zoo.

10: Belize (Visa-free)

Belize is a nation on the eastern coast of Central America, with Caribbean Sea shorelines to the east and dense jungle to the west. Offshore, the massive Belize Barrier Reef, dotted with hundreds of low-lying islands called cayes, hosts rich marine life. Belize’s jungle areas are home to Mayan ruins like Caracol, renowned for its towering pyramid; lagoon-side Lamanai; and Altun Ha, just outside Belize City.

11: Bahamas (Visa-free for 90 days)

The Bahamas is a coral-based archipelago in the Atlantic Ocean. Its 700-plus islands and cays range from uninhabited to packed with resorts. The northernmost, Grand Bahama, and Paradise Island, home to many large-scale hotels, are among the best known. Scuba diving and snorkeling sites include the massive Andros Barrier Reef, Thunderball Grotto (used in James Bond films) and the black-coral gardens off Bimini.

12: Indonesia (Visa-free for 30 days)

Indonesia, a Southeast Asian nation made up of thousands of volcanic islands, is home to hundreds of ethnic groups speaking many different languages. It’s known for beaches, volcanoes, Komodo dragons and jungles sheltering elephants, orangutans and tigers. On the island of Java lies Indonesia’s vibrant, sprawling capital, Jakarta, and the city of Yogyakarta, known for gamelan music and traditional puppetry.

13: Ireland (Visa-free for 90 days)

The Republic of Ireland occupies most of the island of Ireland, off the coast of England and Wales. Its capital, Dublin, is the birthplace of writers like Oscar Wilde, and home of Guinness beer. The 9th-century Book of Kells and other illustrated manuscripts are on show in Dublin’s Trinity College Library. Dubbed the “Emerald Isle” for its lush landscape, the country is dotted with castles like medieval Cahir Castle.

14: Singapore (Visa-free for 30 days)

Singapore, an island city-state off southern Malaysia, is a global financial center with a tropical climate and multicultural population. Popular attractions include Gardens by the Bay, Universal Studios Singapore, Chinatown, the Singapore Zoo, the Merlion statue, Clarke Quay, and the Singapore Botanic Gardens.

15: Argentina (Visa-free for 90 days)

Argentina is a massive South American nation with terrain encompassing Andes mountains, glacial lakes and Pampas grassland, the traditional grazing ground of its famed beef cattle. The country is famous for tango dance and music. Its big, cosmopolitan capital, Buenos Aires, is centered on the Plaza de Mayo, lined with stately 19th-century buildings including Casa Rosada, the iconic, balconied presidential palace.

Sources: [1], [2]. Image sources: Octavio Fossatti [1], [2], Cahal Pech Village Resort [3], Florian Wehde [4], Dennis Rochel [5], Fancycrave [6], Leighton Smith [7], Sander Crombach [8].

South Africa

Proposed Changes to South Africa’s Expat Tax Legislation

The South African government is making a move towards changing its tax on remuneration earned outside South Africa – which could see some expats pay as much as 45% on earnings outside R1 million.

According to Tax Consulting SA, National Treasury has invited key stakeholders to a workshop in March 2019 to address concerns around the planned regulations, which opens up the way for possible tweaking and changes ahead of the planned implementation date of March 2020.

Industry experts believe that the changes are a certainty, even if the draft laws are changed in some way before implementation – and this has some expats worried, with confusion persisting over who the new laws will affect, and how.

Current laws

Currently, South Africans who are earning income abroad are assessed in terms of residency.

In terms of section 10(1)(o)(ii) of the Income Tax Act, if you are working overseas and do not meet the physical presence requirements to be an ordinary resident in South Africa, you are exempt from tax on any foreign income.

To qualify for this exemption, an employee needs to have spent more than 183 full days (including a continuous period of more than 60 full days) outside of the country working, in any 12-month period.

If this requirement isn’t met, then the employee is taxed on worldwide income.

Proposed changes

Originally, the draft regulations proposed the complete repeal of section 10(1)(o)(ii) of the Income Tax Act – the section that deals directly with taxation on foreign remuneration.

Under these conditions, all foreign income would have been taxed by SARS, and citizens would have to claim a credit against South African tax payable for any foreign taxes paid on that foreign income.

The draft regulations were later softened to not be a complete repeal, but that section 10(1)(0)(ii) be changed so that only the first R1 million of foreign remuneration will remain exempt from tax in SA – even if an individual meets the requirements of exemption.

One of the main reasons given for the changes is to curb situations of double non-taxation – being situations in which an individual’s employment income is not subject to tax in either South Africa or in the foreign country where the services are rendered.

Who does it affect?

The proposed changes will affect any South African employees who are earning an income overseas, making over R1 million in the year of assessment.

It will also impact companies that send employees overseas for work, who will have to deal with the new tax implications.

South Africans who have permanently left the country, who have not settled their tax affairs (through financial emigration) may also be subject to the changes, depending on their individual circumstances.

Young people, or anyone who is travelling and working abroad who qualify for exemption under section 10(1)(o)(ii) will remain exempt, provided they earn less than R1 million in the year.

Non-residents

The tax changes could also impact people who are permanently living abroad, who currently qualify for exemption based on section 10(1)(o)(ii). These South Africans are typically not ordinarily resident in South Africa, but may have assets in the country, which could impact how SARS sees their tax affairs.

SARS has a set guideline – called the physical presence test – to determine whether a South African is resident, based on physical presence in the country.

This is for a period or periods exceeding:

91 days in total during the year of assessment under consideration;
91 days in total during each of the five years of assessment preceding the year of assessment under consideration; and
915 days in total during those five preceding years of assessment.
“An individual who fails to meet any one of these three requirements will not satisfy the physical presence test. In addition, any individual who meets the physical presence test, but is outside South Africa for a continuous period of at least 330 full days, will not be regarded as a resident from the day on which that individual ceased to be physically present,” SARS said.

If an individual passes the physical presence test, they will be taxed on their worldwide income in South Africa.

What if you are living in two countries?

In situations where South Africans are split between two nations – working overseas for extended periods of time, but remaining an ordinary resident in South Africa – SARS has double taxation agreements (DTA) with certain countries to determine who has exclusive rights to your taxes.

“South Africa has DTAs with a number of other countries with a view to, amongst other things; prevent double taxation of income accruing to South African taxpayers from foreign sources, or of income accruing to foreign taxpayers from South African sources,” SARS said.

In an interview after the draft regulations were published, Sable International, explained that DTA has different checks and balances, but typically boils down to where most of your assets are (like a permanent home) and where your family is. However, this is subject to a more in-depth investigation from SARS.

It is worth noting, however, that for ordinary residents, all income sources within South Africa will still be taxable in South Africa.

The coming laws only apply to your foreign income – normal tax is paid on all South African assets and capital gains made on those assets in the country.

South Africans who have permanently left the country, who still have assets in the country, are still taxed on those assets, with the only way to divorce being through financial emigration.

Is financial emigration necessary?

According to Sable International, financial emigration – being the legal process of cutting all tax ties to South Africa – may not be necessary to avoid the expat tax, provided you meet the right requirements.

If you are a non-resident (South African living abroad) and can prove to SARS you are ordinarily resident in the country you’re living in, then the tax should not apply.

If you are in a dual-residency situation, SARS may have a DTA with the country you’re living in that may make you exempt.

However, this is specific to each individual situation, with no real general exemption that applies to all expats outside the section 10(1)(0)(ii) limits.

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