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.
https://www.relocationafrica.com/wp-content/uploads/2020/08/scott-graham-OQMZwNd3ThU-unsplash-scaled.jpg17092560Andrew Stegmannhttps://www.relocationafrica.com/wp-content/uploads/2020/09/relocationafricagroup.jpgAndrew Stegmann2020-08-27 11:08:322023-02-21 11:55:21Financial Emigration: Changes to the Withdrawal of Retirement Funds in South Africa
Expat Nest has published a podcast in partnership with expat coach and author Louise Wiles, that focuses on everything from love to parenting to lock-down. This interview is rich in practical coping strategies for dealing both with lock-down and stress.
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.
https://www.relocationafrica.com/wp-content/uploads/2020/06/Expat-nest-logo-1200x800-1.jpg8001200Andrew Stegmannhttps://www.relocationafrica.com/wp-content/uploads/2020/09/relocationafricagroup.jpgAndrew Stegmann2020-08-27 09:44:422023-02-21 11:55:24Expat Nest Podcast: Thriving Abroad Together with Louise Wiles
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.
https://www.relocationafrica.com/wp-content/uploads/2020/03/za-1.png17072560Andrew Stegmannhttps://www.relocationafrica.com/wp-content/uploads/2020/09/relocationafricagroup.jpgAndrew Stegmann2020-08-26 10:13:042023-02-21 11:55:27Updated Level 2 Lock-down Rules for South Africa: Flights, Home Affairs, Transit, and Weddings
Tourism minister Mmamoloko Kubayi-Ngubane has outlined the new travel and accommodation rules for South Africa under the new level 2 lockdown.
Kubayi-Ngubane said that the lockdown has decimated the tourism industry with a number of companies closing permanently or introducing mass retrenchments.
The minister said that her department has developed further regulations alongside the move to a level 2 lockdown to provide further clarity in a number of areas. She further outlined the new changes below.
Accommodation
Kubayi-Ngubane said that the regulations announced around the country’s level 3 lockdown will largely remain in place.
The exception are the eased rules around inter-provincial travel for leisure purposes, with all accommodation facilities allowed to accept visitors from outside of their province.
In addition, breakfast and reception areas at accommodation venues must ensure less than a 50% occupancy of floor space.
The level 3 lockdown rules publishedat the end of June provide that accommodation facilities will be allowed to open for leisure purposes.
However, no more than two people may share a room, with the exceptions of a ‘nuclear family’. The directive states that this includes family members or caregivers living in the same household.
Kubayi-Ngubane confirmed that attractions and theme parks will also be allowed to open under level 2, provided health and safety guidelines are followed.
In terms of Airbnbs, the minister said that all accommodation is open, and it is up to the host of a home-sharing venue to ensure that they are compliant with the sanitation and social distancing regulations.
Restaurants
Kubayi-Ngubane also confirmed that the level 3 requirements will remain in place for the country’s restaurants.
The obvious exception is the reintroduction of alcohol sales for on-site consumption during curfew hours (until 22h00).
Kubayi-Ngubane said that this curfew restriction extends to all establishments – including hotel bars – and that no alcohol may be sold to anyone after 22h00.
The minister also clarified misconceptions around limits on the number of people allowed in restaurants. She said that there is no directive on specific numbers – the emphasis is on space and capacity.
This means that space between tables needs to be in line with social distancing rules, and the number of people allowed in should be relative to a restaurant’s capacity with these limitations in place, she said.
Different restaurants have different capacities and carry different space, so a single number wouldn’t make sense. The limit of 50 people applies only to gatherings, such as weddings and conferences and events, etc.
The level 3 lockdown rules publishedat the end of June provide the rules that restaurants will have to adhere to as follows:
Restaurants, fast food outlets and coffee shops must keep a daily record of the full names, ID number or passport number, nationality, nature of position (i.e. temporary, casual or permanent), residential address, and cell phone numbers of all employees and delivery persons;
Ensure that every employee and delivery person is screened on arrival for shifts and on departing after shifts;
Provide employees with masks to wear and hand sanitiser;
Ensure that an area is demarcated for the collection of orders for delivery that is separate from the place where food is prepared;
Ensure that a contactless pickup zone for customers whose orders are ready to be collected is designated;
Sit-down restaurants must conduct a screening questionnaire and take precautionary measures to protect the person and other persons on the premises. Such measures may include denying such a person access to the premises;
Ensure that customers or guests wear masks at all times while they are on their premises except when eating or drinking;
Ensure that customers or guests queue at least one and a half meters apart behind each other or sideways;
Remove excess chairs /stools and tables or tables combined to enlarge the floor space while reducing and spreading seat capacity to enforce distancing of one and a half meters between guests or customers;
Consider a reservation system to manage demand, and help ensure that capacity limits are adhered to;
No buffets may be offered to guests for self -service;
Food may only be plated and/or provided in covered single portions;
Guests may pickup pre-portioned items and any other buffet service should be handled by food service employees only from behind Perspex or similar protective shields;
Menus must be replaced with non -touch options or sanitised after each guest use;
Where possible and for instance while taking orders, waiting staff must stand at least a meter from tables;
Where possible, tablecloths should be removed from tables. Only essential items such as salt and pepper, should remain on tables and be sanitised after each guest;
Remove excess chairs /stools and tables or tables combined to enlarge the floor space while reducing and spreading seat capacity to enforce distancing of one and a half meters between guests or customers;
Items on waiting stations must be minimised;
Clearing and cleaning systems with designated containers for different items and sealable refuse containers for food waste must be implemented and used.
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.
https://www.relocationafrica.com/wp-content/uploads/2020/08/alex-holyoake-dDAM6LlicQQ-unsplash-scaled.jpg17072560Andrew Stegmannhttps://www.relocationafrica.com/wp-content/uploads/2020/09/relocationafricagroup.jpgAndrew Stegmann2020-08-25 11:44:582023-02-21 11:55:30Here Are the Updated Lock-down Rules for Hotels, Airbnbs, and Restaurants in South Africa
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].
Expat Nest Podcast: Thriving Abroad Together with Louise Wiles
Expat Nest has published a podcast in partnership with expat coach and author Louise Wiles, that focuses on everything from love to parenting to lock-down. This interview is rich in practical coping strategies for dealing both with lock-down and stress.
Listen to the discussion 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].
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:
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:
Flights
Transport minister Fikile Mbalula has published a new directive indicating that domestic passenger flights are permitted at the following airports:
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.
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].
Here Are the Updated Lock-down Rules for Hotels, Airbnbs, and Restaurants in South Africa
Tourism minister Mmamoloko Kubayi-Ngubane has outlined the new travel and accommodation rules for South Africa under the new level 2 lockdown.
Kubayi-Ngubane said that the lockdown has decimated the tourism industry with a number of companies closing permanently or introducing mass retrenchments.
The minister said that her department has developed further regulations alongside the move to a level 2 lockdown to provide further clarity in a number of areas. She further outlined the new changes below.
Accommodation
Kubayi-Ngubane said that the regulations announced around the country’s level 3 lockdown will largely remain in place.
The exception are the eased rules around inter-provincial travel for leisure purposes, with all accommodation facilities allowed to accept visitors from outside of their province.
In addition, breakfast and reception areas at accommodation venues must ensure less than a 50% occupancy of floor space.
The level 3 lockdown rules published at the end of June provide that accommodation facilities will be allowed to open for leisure purposes.
However, no more than two people may share a room, with the exceptions of a ‘nuclear family’. The directive states that this includes family members or caregivers living in the same household.
Kubayi-Ngubane confirmed that attractions and theme parks will also be allowed to open under level 2, provided health and safety guidelines are followed.
In terms of Airbnbs, the minister said that all accommodation is open, and it is up to the host of a home-sharing venue to ensure that they are compliant with the sanitation and social distancing regulations.
Restaurants
Kubayi-Ngubane also confirmed that the level 3 requirements will remain in place for the country’s restaurants.
The obvious exception is the reintroduction of alcohol sales for on-site consumption during curfew hours (until 22h00).
Kubayi-Ngubane said that this curfew restriction extends to all establishments – including hotel bars – and that no alcohol may be sold to anyone after 22h00.
The minister also clarified misconceptions around limits on the number of people allowed in restaurants. She said that there is no directive on specific numbers – the emphasis is on space and capacity.
This means that space between tables needs to be in line with social distancing rules, and the number of people allowed in should be relative to a restaurant’s capacity with these limitations in place, she said.
Different restaurants have different capacities and carry different space, so a single number wouldn’t make sense. The limit of 50 people applies only to gatherings, such as weddings and conferences and events, etc.
The level 3 lockdown rules published at the end of June provide the rules that restaurants will have to adhere to as follows:
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].