Tag Archive for: SA Government

Andrew Stegmann
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Warning Over Government’s Plans to Change South Africa’s Emigration Finance Rules

A number of tax and financial groups have issued warnings over a new draft bill which will introduce changes for South Africans looking to take their retirement funds out of the country.

Under the current system, members of preservation funds and retirement annuity funds may withdraw from such funds if they formally emigrate from South Africa for exchange control purposes and their emigration is approved by the South African Reserve Bank

However, changes in the draft Taxation Laws Amendment Bill (TLAB) will effectively phase out the concept of emigration for exchange control purposes.

The amendment will mean that South Africans emigrating from the country will only be able to make a withdrawal when a retirement fund member has ceased to be an tax resident and has remained so for a consecutive period of at least three years.

The change has come under fire as the TLAB was the subject of public hearings in parliament on Wednesday (7 October).

Impractical and draconian

“The proposed requirement that an individual be non-resident for a period of three years prior to being entitled to access retirement funds is impractical, draconian and will present administrative difficulties for both SARS and taxpayers,” said professional services firm PwC in its submission.

The firm said that where an individual permanently departs from South Africa, the proposed rules could – depending on the particular circumstances of that individual – result in considerable financial hardship for an extended period of time before retirement funds are available.

“Under the current rules, a person who emigrates is entitled to withdraw their retirement funds immediately. Under the proposed rules, they would now need to wait for at least three years before being able to do so,” the firm said.

“Retirement funds are frequently required by emigrants to make emigration financially viable and the proposed rules will severely impact this.”

As an alternative, PwC recommended that the proposed three-year residence rule should be replaced with another ‘more practical rule’.

“For example, it could be linked to a person ceasing to be ordinarily resident in South Africa – as opposed to necessarily not tax resident,” it said.

The opposite of modern

In its submission,  Tax Consulting SA said that the amendment is at ‘cross purposes’ to its intended goal of a more ‘modern’ exchange control system.

It highlighted that under the new system , retirement benefits will effectively be locked in and will be inaccessible to the individual in question for a minimum period of three years, even after they have left South Africa permanently.

This restriction will only be lifted once the taxpayer in question is able to prove they have been non-resident for an uninterrupted period of at least three years.

“By any measure, this new test is the opposite of modernisation and a step back towards locking in retirement funds after becoming non-resident for tax and exchange control purposes,” it said.

“Furthermore, if the test is to be based on residency, it is not clear why withdrawal is subject to a period of three full years. If the taxpayer has ceased residency, why impose a punitive lock-in of this extent?,” the firm asked.

Tax Consulting SA that the proposed amendment will do away with a well-established process that allows emigrants to freely expatriate their retirement benefits with one that is far more restrictive and less transparent.

 

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
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South Africa Has Opened Up Visa-free Travel to These 11 Countries

Home Affairs minister Dr Aaron Motsoaledi has announced visa-free travel for 11 countries in an effort to boost tourism to the country.

In a media briefing on Sunday (4 October), Motsoaledi said that the visa-free status of citizens of some countries and territories was temporarily suspended at the start of the lockdown period.

“In line with the commitment of Government to take urgent steps to address the economic and tourism stagnation brought about by the outbreak of Covid-19, visa-free status of citizens from a number of countries and territories has been reinstated.”

However, the minister said that visa-free status does not alter the current Covid-19 regulations, including with regards to the bans in place for leisure travelers from high-risk countries, as determined by the South African Government.

The countries include (bolded are high risk):

  • South Korea;
  • Spain;
  • Italy;
  • Germany;
  • Hong Kong;
  • Singapore;
  • USA;
  • UK;
  • France;
  • Portugal;
  • Iran.

Motsoaledi said he has instructed officials to communicate this decision to the aviation industry, embassies and other stakeholders as a matter of urgency.

“The port managers have been instructed to adhere to the SADC protocol and guidelines regulating the movement of essential goods under Covid-19 regulations.

“The guidelines regulating truck drivers travelling across the border will continue to apply as has been the case for the past seven months,” he said.

The minister said that immigration officers will be required to assess the movement and place of origin of the traveller and not the country of origin of the airline concerned.

“Transit travellers through South Africa by air will be allowed to connect to their destinations, subject to them complying with applicable health protocols but need not produce the 72 hours negative certificate.”

High-risk countries 

Motsoaledi said that any person from a country listed as having a high Covid-19 infection and transmission rate, who wish to undertake business travel into South Africa, may, in writing, apply to the Department of Home Affairs and demonstrate reasons for their request to enter the Republic for business purposes during the period of the national state of disaster.

Such applications must be directed to email Covid19BusinessTravel@dha.gov.za and supported by:

  • A copy of passport and/or temporary residence visa;
  • Proof of business activities to be undertaken in the republic;
  • Proof of travel itinerary; and
  • proof of address or accommodation in the republic.

The list of these high-risk countries will be updated fortnightly, said Motsoaledi.

“Immigration officers have been instructed to apply the requirements with a measure of flexibility in order to allow applications for business travel to be lodged at the ports of entry if and when necessary and await the outcome before entry into the republic is allowed,” he said,

All other categories of travellers from medium and low-risk countries are required to produce a certificate of negative Covid-19 test result not older than 72 hours from the time of departure, Motsoaledi said.

“Any person who fails to submit the certificate will be required to quarantine at his or her own cost.”

 

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
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Phase 3 of Coronavirus Vaccine Trial Starts in South Africa

Medical companies Pfizer and BioNTech have announced the enrolment of South Africa for phase 3 of their Covid-19 vaccine trial.

The recently expanded study will include approximately 44,000 global participants, allowing a further increase in trial population diversity, and include people with chronic, stable HIV (human immunodeficiency viruses), Hepatitis C, or Hepatitis B infection.

The expanded study will also provide additional safety and efficacy data.

Pfizer said that the selection of South Africa as one of the global hosts of the study was based on the local scientific expertise and capabilities, the epidemiology of the disease, and South Africa’s prior experience in running clinical trials.

The study will include approximately 800 participants and will be conducted in four sites across Gauteng, Limpopo and the Western Cape. The trials received regulatory approval from the South African Health Products Regulatory Authority (Sahpra) on 22 September 2020.

Dr Essack Mitha will be the study’s national principal investigator. Mitha has more than 16 years’ experience in research and development (clinical trials) in the medical and pharmaceutical sectors.

“We are proud and excited to be given the opportunity to take part in this global research effort. South African patients will play a critical role in the fight against Covid-19.

“We are confident that the South African sites will contribute high-quality data to this ground-breaking study, and that medical science will prevail in this pandemic,” said Dr Mitha.

Having secured regulatory approval from the US Food and Drug Administration (FDA) to proceed with the phase 3 clinical trials of the vaccine trial, Pfizer and BioNtech have commenced and have already recruited more than 35,000 participants globally.

“As Pfizer, we are proud to be bringing this important study to the country, and to the African Continent, to add to the growing knowledge of this virus so we can find a lasting and sustainable solution to end this pandemic,” said Dr Bha Ndungane-Tlakula, Pfizer’s medical director for South Africa.

Increasing Covid-19 numbers

The Gauteng Department of Health meanwhile, is concerned about the 6% increase in the number of Covid-19 active cases since the country moved to level 1 of the lockdown.

South Africa moved to level 1 of the lockdown on 21 September 2020.

Gauteng remains the epicentre of the virus with 219,373 cases to date followed by KwaZulu-Natal with 118,889, the Western Cape 110,541 and Eastern Cape 89,076.

“The rise in infections has been attributed to among other factors to non-adherence to non-pharmaceutical interventions by some members of the public,” the provincial department said.

The areas of concerns include Johannesburg’s Inner City, Soweto, Sedibeng and Tshwane.

“It is important that we emphasise to the public that the fight against COVID-19 is far from over. We want to caution communities that we need to continue adhering to non-pharmaceutical interventions,” said Gauteng acting MEC of Health, Jacob Mamabolo.

The MEC called on everyone to play their part by wearing facemasks, social distancing, sanitising and washing hands.

According to the provincial department, 1,200 people are currently hospitalised in public and private health facilities.

Meanwhile, South Africa recorded 903 new COVID-19 cases in the last 24 hours bringing the cumulative number of detected infections to 672,572.

In addition, 81 more people succumbed to the respiratory disease pushing the death toll to 16,667.

Of the latest deaths, 28 are from Gauteng, 11 from KwaZulu-Natal, 10 from the Northern Cape, eight from the Eastern Cape and the North West, six from the Western Cape, and five from Limpopo and Free State.

“We extend our condolences to the loved ones of the departed and thank the healthcare workers that treated the deceased patients,” said health minister, Dr Zweli Mkhize.

Meanwhile, recoveries now stand at 605,520 which translates to 90%.

The data is based on the 4 164 491 tests conducted of which 12,011 were performed since the last report.

Globally, there have been 33,249 563 confirmed cases of Covid-19, while the death toll has now surpassed 1 million, the World Health Organisation reported.

 

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
,

South Africa Has Published Its List of 60 Countries Banned From Leisure Travel

As of today, 1 October 2020, South Africa has opened its borders to international travelers. There are, however, numerous restrictions, including presenting a negative COVID-19 test, and visitors only being allowed to enter through select airports and land border posts. Furthermore, the South African Government has published a list of 60 countries that are banned from leisure travel to South Africa.

International Relations and cooperation minister Naledi Pandor said in a media briefing on Wednesday that the country’s infections rate has gone down and the country can return to a ‘more normal’ situation.

She said that the government has developed a list of high and low-risk countries which will be allowed to travel to and from the country based on World Health Organization guidelines over a seven-day period.

  • High risk travelers are those who come from countries with higher numbers of Covid-19 infections and reported deaths compared to South Africa.
  • Medium risk travelers are from countries with relatively equal number of infections and death toll to SA.
  • Low risk travelers obviously originate from countries with lesser number of infections of Covid-19 and death toll than SA.

This list will be updated on a regular basis, reviewed every two weeks, Pandor said.

Leisure travelers from high-risk countries will not be permitted. The exception will be business travelers with scarce and critical skills including diplomats, repatriated persons, investors and people participating in professional sporting and, events will undergo the same health protocol screenings. “Travelers that intend to visit the country will need to produce a Polymerase Chain Reaction (PCR) test not older than 72 hours from the time of departure from the country of origin,” Pandor said.

“The test must be conducted by a certified medical practitioner and must have the name and signature of the person who conducted the test.” Upon arrival, travelers will be screened for any Covid-19 symptom s and will also be screened for contract with people who have been in contact with others who could have had Covid-19.

Travelers will also need to provide proof of accommodation addresses in case they need to self-isolate. International travel around the world has been severely impacted by the coronavirus pandemic. Those who are found to have Covid-19 after entering the country will be required to isolate for 10 days at their own cost. Travel insurance will be mandatory for all travelers. If the passport of the traveler from a high risk country indicates that they spent 10 days or more in a low risk country before departure, they will be considered to be arriving from a low risk country.

Banned countries are:

  1. Albania
  2. Argentina
  3.  Armenia
  4. Austria
  5. Bahrain
  6. Belgium
  7. Bolivia
  8. Bosnia and Herzegovina
  9. Brazil
  10. Chile
  11. Columbia
  12. Costa Rica
  13. Croatia
  14. Czech Republic
  15. Denmark
  16. Ecuador
  17. France
  18. Georgia
  19. Greece
  20. Guatemala
  21. Guyana
  22. Honduras
  23. Hungary
  24. Iceland
  25. India
  26. Iran
  27. Iraq
  28. Ireland
  29. Israel
  30. Jamaica
  31. Jordan
  32. Kuwait
  33. Lebanon
  34. Luxemburg
  35. Maldives
  36. Malta
  37. Mexico
  38. Moldova
  39. Montenegro
  40. Nepal
  41. Netherlands
  42. North Macedonia
  43. Oman
  44. Palestine
  45. Panama
  46. Paraguay
  47. Peru
  48. Portugal
  49. Puerto Rico
  50. Qatar
  51. Romania
  52. Russia
  53. Slovakia
  54. Suriname
  55. Switzerland
  56. Ukraine
  57. United Emirates
  58. United Kingdom
  59. USA
  60. Venezuela

To read Home Affairs’ full speech on the reopening of the borders for international travel, click here. And to read the SA Government Gazette changes, 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], [3]. Image sources: [1], [2].