Immigration
Summary
The Department of Home Affairs has published the requirements for the long awaited Remote Worker Visa intended for foreign nationals who are required to stay in South Africa to conduct work for a foreign employer pursuant to a foreign employment contract which partially requires conducting of certain work activities within the borders of South Africa.
The detail
In essence, foreign nationals conducting services for a foreign employer under a foreign employment contract are now eligible to work from within South Africa for periods up to 36 months, subject to the issuance of a Remote Worker Visa.
The significant amendments to the previously gazetted Remote Worker Visa regime relate to the taxation obligations on the holders of such visas, which required discussion with the South African Revenue Services (“SARS”), and confirmation of the gross minimum annual salary level at the equivalent of ZAR 650 796.
With respect to the tax requirements, please refer to the distinction below:
Tax Compliance 1: if the recipient of the Remote Worker Visa is a tax resident in a country that the Republic has an agreement in force with for the prevention of or relief from double taxation under section 108(2) of the Income Tax Act, 1962, the recipient will be required to register with SARS if they are present in the Republic for longer than an aggregate of 183 days during any 12 month period; or
Tax Compliance 2: if the recipient of the Remote Worker Visa is not a tax resident in a country referred to in (ii), the recipient will be required to register with SARS irrespective of duration in the Republic.
The holder of a Remote Worker Visa may not take up direct local employment in South Africa and may further not apply for a change of status to his or her Remote Worker Visa while in the Republic, unless under exceptional circumstances as prescribed for Visitor’s Visas.
Furthermore, self employed foreign nationals, or those intending to operate a business in South Africa, will need to explore alternative options within the Immigration Legislation.
While the documentary requirements are straightforward, we expect initial challenges as the Consulates abroad interpret and implement the visa regime.
Contact us
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Stephen Marlin
Partner: Territory Leader
Supriya Boodhena
Senior Manager
Natalie McLean
Senior Manager
Further information on Vialto Partners can be found here: www.vialtopartners.com
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