South
Africa’s plan to attract more professionals to its skills-starved
economy through the introduction of a so-called nomad visa for remote
workers has been slowed by the need to amend tax regulations.
The
impediment comes after an initial delay when changes to the visa regime
had to be temporarily withdrawn because mandatory public consultation
procedures hadn’t been followed. President Cyril Ramaphosa announced his
intention to introduce a remote-working visa in his 2022
state-of-the-nation address.
“There is just a tax-related matter
that needs to be addressed in the regulations,” Leon Schreiber, the
country’s Home Affairs Minister, said in a response to queries. “Once
that is done, the department will commence with the rollout.”
South
Africa’s byzantine work permit regime, which means that securing a work
permit can take well over a year, has been flagged as a hurdle to
economic growth by both the presidency and the country’s main business
organisations.
Still, a backlog of more than 300 000
applications for all kinds of residence permits has been halved since a
new cabinet was announced on June 30 after the formation of a coalition
government.
The home affairs ministry initially proposed allowing
people employed and paid by companies elsewhere to live in the country
for as long as six months a year without paying tax, as long as they
earned at least R1 million annually.