New Tanzanian SIM Card Regulations In Effect

This information is courtesy of FB Attorneys (Dar es Salaam, Tanzania).

In a bid to ensure proper regulation, monitoring and identification of SIM card users in Tanzania, the Ministry of Works, Transport and Communications has issued detailed procedures for registration of SIM cards via the Electronic and Postal Communications (SIM card Registration) Regulations 2020 (SIM card Registration Regulations) which came into force on 7 February 2020.

Regulation 4 of the SIM card Registration Regulations lists a number of requirements to be complied with by owners and people who intend to use detachable SIM cards in Tanzania. The Regulations require all users and owners of SIM cards to register bio-metrically with their respective licensees (mobile network operators) or authorized distributors, agents or dealers. It should be noted that the bio-metric registration will be conducted by using a National Identity Card (NIDA card) or a National Identity Number (NIN). Also, the Regulations prohibit persons to register any SIM card by using any other person’s NIDA card.

Further, the Regulations recognize bio-metric SIM card registration for minors as well. In doing the said registration, a parent or a guardian is required to present a minor’s certified copy of birth certificate or adoption document or valid passport with valid visa and minor’s portrait photo. Moreover, the parent/guardian will be required to present their NIDA card for finger print verification of the parent. However, after attaining the age of majority, the minor shall be required to re-register using his or her NIDA card, failure of which will result in the deactivation of the SIM card.

Apart from minors, the Regulations prescribe different registration procedures for visitors, foreigners, refugees and diplomats as follows:

  • For visitors, a passport with a valid visa will be required then other normal registration procedures will be observed
  • For foreigners and refugees, NIDA identity will be required followed by normal registration procedures
  • For diplomats, a passport and diplomatic identity will be required with no fingerprints to be taken during registration.

Furthermore, the Regulations stipulate an alternative registration procedure for persons with defaced fingerprint or have no fingers at all. The alternative registration demands a customer to obtain NIDA’s approval for such kind of registration. In doing so, NIDA is supposed to generate verification questions in their system in the form of questions, and these will be used by the operator to verify and register a customer with physical challenges.

Also, the Regulations oblige users and owners of SIM cards to report any change of ownership or possession of a registered SIM card. Regulation 12 makes it clear that any change of information submitted for the purposes of registering a SIM card, should be reported within 15 days from the date of occurrence of any such change.

Furthermore, the Regulations make it mandatory for owners of registered SIM cards to report loss or theft of SIM card and obtain a loss report or preliminary investigation report within 7 days from the date of loss or theft. The loss report shall be submitted to the service provider when requesting for a replacement of a SIM card.

It is worth noting that individuals are prohibited from owning/using more than 1 SIM card from the same operator for use on voice, short message and data services. On the other hand, an individual is allowed to own/use a maximum of 4 SIM cards from different operators for use on machine to machine communication. In case of a company or an institution, the Regulations prohibits owning of more than 30 SIM cards from the same operator and not more than 50 SIM cards from different operators for use on machine to machine communication. However, a customer may be allowed to register/own more than the maximum specified number of SIM cards upon being granted an approval from Tanzania Communications Regulatory Authority.

Additionally, the Regulations impose punishment for contravening the above requirements. In case of individuals, the punishment is a fine of not less than TZS 5M or imprisonment for a term of not less than 12 months or to both, and plus a fine of not less than TZS 75,000 for every day during which the SIM card was used or possessed. For companies or institutions, the punishment is a fine of not less than TZS 50M, plus additional fine of not less than TZS 175,000 for everyday during which the SIM card was used or possessed.

It is also important to note that the Regulations provide a grace period up to 30 June 2020 for customers who own more than the required number of SIM cards to accordingly choose SIM cards that are to remain active and abide by the Regulations. Lastly, unused SIM cards for 90 consecutive days will be deactivated.

To read the SIM card Registration Regulations, 2020, click here.

 

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].

South African Expat Tax Amendment Countdown Begins

Compiled by Carin Smith.

An amendment to the Income Tax Act will bring considerable change to the expat landscape as from March 1, 2020.

Jean du Toit and Jonty Leon are the technical editors of the publication “Expatriate Tax – South African Citizens Working Abroad and Foreigners in South Africa”.

Amendments to the Income Tax Act are due to come into effect from March and, among other things, South Africans working overseas will only be exempt from paying tax on the first R1m they earn elsewhere.

The exemption was discussed in the 2019 Budget Review and has been the subject of some controversy in South Africa, Fin24 previously reported.

Du Toit and Leon say that in the 2017 Taxation Laws Amendment Bill, it was announced by National Treasury that the expat exemption would be repealed in its entirety – meaning that the totality of an expat’s income earned abroad would be subject to tax in South Africa.

“This perturbed the expat community, their employers and other stakeholders.

“Following presentations to the Parliamentary Standing Committee on Finance and many submissions and workshops later, expats were begrudgingly handed a R1 million per annum exemption, and an extension to the effective date of the amendment to March 1, 2020,” explains Du Toit.

“It must be understood that expats’ entire remuneration will be taken into account. What this means is that, if they remain tax resident, they will be taxed fully on any allowances and benefits, as if they were just a normal employee working in South Africa.”

Leon foresees that the R1 million exemption will, in some case, likely be exhausted “somewhat rapidly”.

This will especially be the case where the employer pays for “benefits” such as security costs or drivers, international school fees, medical insurance or housing, even though these may not provide any economic benefit to the expat.

One of the unforeseen consequences, in the view of Du Toit, could be that expats may simply decide to sever their ties with South Africa and cease their tax residency.

“Unfortunately, the solutions for the expat in relation to this amendment are now becoming very limited. The expat exemption only relates to South Africans who are tax resident, so the obvious answer would be to cease tax residency of South Africa,” says Leon.

“However, doing this isn’t as simple as one might think. There are different options when doing this, but by far the cleanest and most direct approach would be to financially emigrate, provided this is done correctly.”

He cautions that ceasing tax residency, however, comes with certain tax implications, which must be understood fully before one embarks on this path.

 

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].

Cape Town is the SA Metro with the Highest Prices Paid for Residential Property This Past Year

For the 12-month period to end November, Cape Town topped R21.75bn in residential property transactions at an average transaction value of R2.2m. The metro also scooped the highest prices paid for residential property in the country this year according to Ross Levin, managing director for Seeff Atlantic Seaboard and City Bowl.

Comparatively, Pretoria metro reached around R17bn (with an average of R1.2m), Sandton R13.4bn (with an average of R2.3m), Johannesburg R13bn (with an average of R1.483m) and Durban R6.4bn (with an average of just over R1m).

The wealthy might not be buying as much as they used to, but Cape Town still tops their list of most desirable property, says Levin. Atlantic Seaboard and City Bowl sales amount to R4.3bn including 30 of the highest prices paid.

The rental market has also performed exceptionally despite the headwinds. Seeff has concluded rentals of up to R170,000 per month in Fresnaye, R130,000 at the Waterfront, R120,000 in Bantry Bay and R60,000 permonth in Tamboerskloof in the City Bowl. Holiday rentals this summer is expected to reach R100,000-R250,000 per night in Clifton.

Semigration buyers back

Semigration buyers are back and Levin says that sales are often delayed only by the slow sales cycles in Gauteng and other inland provinces. Foreign buyers too have invested over R500m in property with the highest demand from German, UK and US buyers.

Cape Town achieved about 50 high-value sales priced from R20m-R60m compared to just two in the upper end of Sandton/Johannesburg and a highest price of R23m.

The highest prices paid include: R60m in Fresnaye, R58.5m in Bantry Bay, R47m in Bishopscourt, R45m in Clifton, R39m in Higgovale, R36.5m in Llandudno, R36m in Camps Bay, R34m in Constantia Upper and R32m in Mouille Point. We are likely to see a few more high value sales over the summer, says Levin further.

Notable too, is that nine of the top 10 suburbs in the country are now in Cape Town, up from seven about three years ago. These all now boast a median price of over R10m and over R20m for Clifton, says Levin. Only Sandhurst in Sandton/Johannesburg is included in the top 10 ranking:

Southern Suburbs

The Southern Suburbs enjoyed an active year and is not just home to two of the top suburbs in the country but offers a high concentration of top performing schools which drives demand, says James Lewis, managing director for Seeff Southern Suburbs, Hout Bay and Llandudno.

Total sales of almost R4.5bn has been achieved including six high-value properties ranging to R34m in Constantia and R47.5m in Bishopscourt. Although the sub-R10m price band dominated, the ‘Uppers’ such as Claremont and Kenilworth have attracted prices of up to R20m (Claremont) while Newlands achieved eight sales above R10m, and Rondebosch achieved a further six.

The Southern Suburbs rental market has been a top achieving sector this year, says Lewis. Student rentals and young professionals kept the sectional title rental agents busy while upper-end family tenants paid up to R80,000-R100,000 per month in top-end areas such as Constantia.

Crowning another year of top accolades, Cape Town was voted best city in the world for the seventh successive year by the UK’s Telegraph Newspaper. The Cape has lost none of its sparkle says Mr Levin. It is the second wealthiest city in the country and upper-end buyers will spend 100%-200% on average more on real estate purchases on the Atlantic Seaboard compared to anywhere elsewhere.

 

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].

Corporal Punishment in the Home Officially Banned in South Africa

The South African Constitutional Court has announced that corporal punishment in the home is henceforth banned.

Many countries already have such bans, in every setting, in place, including Sweden, Germany, Spain, Greece, and Venezuela.

Corporal punishment as part of the judicial system has been banned since the Abolition of Corporal Punishment Act came into effect in 1997. The same has been banned in schools since the South African Schools Act of 1996 (although a 2018 StatsSA survey showed that many children still endure it at schools, despite it being outlawed). However, up to yesterday, corporal punishment in the home (such as parents spanking their children as a form of discipline) was allowed.

Chief Justice Mogoeng Mogoeng delivered the ruling, upholding a 2017 high court ruling which made it illegal for parents to spank their children at home. This served as a dismissal of an appeal to the ruling, which was made by civil society group Freedom of Religion South Africa (For SA).

The ruling against corporal punishment in the home was unanimous.

What the ruling means

The previous defense of “reasonable chastisement” is now invalid, in cases where children take their parents to court over physical punishment. Such punishment is now viewed as abuse, and South African children may, as they wish, take their family members to court, and have confidence that the court should rule in their favor.

This means that parents who insist on continuing to use corporal punishment against their children can gain a criminal record for doing so.

What is physical punishment?

Physical punishment involves the use of physical force with the intention of causing a child to experience bodily pain or discomfort, in an attempt to correct or punish the child’s behavior. This includes spanking, hitting, pinching, paddling, whipping, slapping, and so on.

What recent studies say

Dr Londeka Ngubane (who was appointed to serve on a transport panel for upcoming developments, by Minister of Transport Blade Nzimande earlier this year), as part of her thesis for a PhD in Criminology, stated that corporal punishment does not achieve what it intends to, and its use has become obsolete in democratic societies. She also stated that the problems that emanate from the persistent use of corporal punishment not only perpetuate the cycle of child abuse, but also impact negatively on academic performance and perpetuate a culture of violence in our vulnerable societies. She said that corporal punishment has adverse physical and emotional effects on children, and that it may actually exacerbate negative behavior for some children, not solve it.

Ngubane found that many children she spoke to as part of her study did not even know they were being victimized. This Constitutional Court ruling will hopefully go a long way to making that known.

The negative impacts of corporal punishment, used anywhere against children, has long been known. Acclaimed American pediatrician Benjamin Spock was the first pediatrician to study psychoanalysis to try to understand children’s needs and family dynamics. His ideas about childcare influenced several generations of parents – from as early as the 1920s – to be more flexible and affectionate with their children, and to treat them as individuals. Spock once stated, “Parents… have come to realize that children can be well behaved, cooperative, and polite without ever having been punished physically”.

Writing for Psychology Today, in 2014, psychiatrist Paul C Holinger says physical punishment of a child stirs up precisely the feelings one does not want. In general, one wants to elicit interest and enjoyment. Physical punishment stirs up distress, anger, fear, and shame. As we get older, these feelings combine with experience to form our more complex emotional life.

Holinger says that physical punishment is a major public health problem, with many adults still approving of it, despite compelling evidence that it does not work, it makes things worse, and there are effective alternatives.

There has been meta-analyses conducted on hundreds of studies on physical punishment. The data in this area have recently been summarized by Elizabeth Gershoff (Report on Physical Punishment in the United States, 2008) and Susan Bitensky (Corporal Punishment of Children, 2006). The evidence shows that physical punishment is stunningly harmful at every developmental level.

Studies show that children who are hit identify with the aggressor and are more likely to become hitters themselves, i.e., bullies and future abusers of their children and spouses. They tend to learn to use violent behavior as a way to deal with disputes.

One is not permitted to hit one’s spouse or a stranger; these actions are considered assault and battery. Why in the world should one be permitted to hit a smaller and even more vulnerable child? If hitting a child is not wrong, then nothing is wrong.

What are some alternatives for unruly children?

Dr Stefanie Röhrs from the institute, speaking on Cape Talk last year, said there were other tools parents could use to discipline their children. She mentioned a “timeout” and the taking away of privileges as some options parents could resort to aside from spanking children.

Röhrs said it was important to understand that a child was going through the development phase, meaning they were still unclear on the rights and wrongs of their actions.

She reiterated that people would never smack their adult relatives out of love, as that would clearly be seen as wrong. Many parents need to rethink their outdated views on how best to discipline their children, and consider the fact that just because it was done to them, does not mean it should be passed on to their children.

  1. Use words to explain your feelings. Use words to label your child’s feelings.
  2. Set a good example.
  3. Use positive reinforcement – boost your child’s self-esteem when they behave correctly.

More information on alternatives to physical punishment can be found in the American Psychoanalytic Association’s 2013 Position Statement on Physical Punishment, which you can view by clicking here.

Comments on the ruling

Children’s rights group The Children’s Institute lauded the ruling and said it was a clear victory for children’s rights and the end to the neglect of children’s rights.

In Parliament on Wednesday, the Social Development Portfolio Committee welcomed the Constitutional Court’s ruling on corporal punishment at home, further stating that this is a victory for South Africa as it is “unconstitutional to chastise children”.

Speaking in the National Assembly, SA President Cyril Ramaphosa welcomed the ruling, and said that beatings children received from parents and caregivers had become “a serious problem”.

The President said children need to be protected from violence in the home. “When we talk about violence against children we focus on sexual abuse, but the battering of children is a very serious problem that must also get sufficient attention. This judgment will send a strong message that the beating of children will not be tolerated at all costs,” he said.

In closing

In 1966, Martin Luther King Jr., as part of one of the last major marches of the American civil rights era, addressed a crowd in Yazoo City, Mississippi.

MLK said, “I’m sick and tired of violence… I’m tired of hatred. I’m tired of selfishness. I’m not going to use violence, no matter who says it!”

 

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], [3], [4], [5], [6], [7], [8], [9], [10], [11], [12], [13], [14], [15]. Image sources: [1], [2].

Naspers Has Officially Listed Europe’s Biggest Consumer Internet Firm on the Euronext Exchange in Amsterdam

South African e-commerce group Naspers is listing its global empire of consumer internet assets under the name of Prosus on Wednesday – and the jewel in the crown is a 31% stake in Chinese tech titan Tencent.

The spin-off in Amsterdam marks the end of an era for Naspers as it looks to move beyond the legacy of former Chief Executive Koos Bekker’s prescient investment of just $34 million in Tencent when it was a startup in 2001, one of the most lucrative bets in corporate history.

The stake in Tencent, the world’s biggest video game company and home to the hugely popular WeChat social media platform, is now worth $130 billion and has buttressed Naspers’ rapid growth towards becoming Africa’s most valuable listed company.

In a statement, the Euronext stock exchange gave an indicative price of 58.70 euros per share for Prosus, implying a market value of 95.3 billion euros ($105 billion) in one go.

That would make it the third-largest stock on the Amsterdam exchange after Shell and Unilever, and Europe’s No.2 tech firm after Germany’s SAP.

European players are still, however, dwarfed by the likes of Facebook and Amazon in the United States.

The indicative price is based on Naspers’ closing price in Johannesburg, with trading in Prosus set to start on Wednesday morning in Amsterdam.

The Tencent stake has been worth more than Naspers itself for years, and dominated the $103 billion group’s finances. One motivation for spinning off Prosus is to narrow that value gap.

One reason for the discount is Naspers’ heavy weighting on the Johannesburg Stock Exchange.

The stock currently represents around a quarter of the value of the shareholder-weighted top 40 index, which makes it difficult for index investors attempting to limit their exposure to a single share.

The Prosus listing should see about a quarter of Naspers’ value move to Amsterdam.

“We believe Prosus will present a new and attractive opportunity for global tech investors to access our unique portfolio of internet businesses, providing a strong foundation for our future growth plans,” said CEO Bob van Dijk.

“The listing is also designed to reduce our weighting on the Johannesburg Stock Exchange, which we believe will maximize shareholder value over time.”

Naspers will retain a stake of about 25% in Prosus, with the other 25% distributed to Naspers shareholders and making up the free float.

Interior of Euronext Amsterdam.

Food delivery firms

Prosus also has stakes in fast-growing food delivery, social media, and payments companies in China, India, Brazil and Russia. See Factbox:

In the food and delivery sector, it owns stakes in Delivery Hero, Takeaway.com, Latin America’s iFood, and India’s Swiggy.

For the fiscal year ended in March 2019, Prosus posted a 15% rise in revenue to $2.65 billion, and its operating loss narrowed to $418 million from $615 million.

Prosus accounts for its Tencent stake as an “equity accounted investment”, which added $3.41 billion euros to 2019 pre-tax profit.

Prosus’ net profit ended up being $4.25 billion, thanks to a $1.6 billion windfall on its sale of a 10% stake in Flipkart to Walmart.

Jasper Jansen, an analyst at the Dutch shareholders rights group VEB, said he applauded the arrival of Prosus.

“We love the fresh blood – finally there’s a real company listing here that’s active in the new economy,” he said.

However, he criticized Naspers’ decision to maintain a two-class share structure system which gives its biggest shareholders extra voting rights in some circumstances.

Reporting by Toby Sterling; Editing by Pravin Char and Jan Harvey.

 

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: Zandcee [1], [2].