Authored by: Marisa Jacobs, Director at Xpatweb

On 23 May 2020, the Department of Home Affairs (“DHA”) has confirmed that international travel will be permitted for South Africans to travel out of South Africa, should they fall within one of the (limited) categories as outlined by the DHA.

​The main categories which are being considered for those who are required to travel are: work, study, to take up permanent residency, medical conditions and/or family reunions.

These categories provide concessions towards many situations South Africans find themselves in, and where international travel is an important consideration, there is a special onus on the reconciliation of family members globally.  

Getting Parent(s) Out of South Africa
We have seen an increase concern about the state of readiness of South Africa over the following four to six months as the virus works its way through society. Government’s publicized “peak” is between August or September 2020, with some experts weighing in this may be more end July 2020. The questions remain on how South Africa as a society will deal herewith, adhering to the rules of good hygiene, social distancing and protecting the vulnerable categories.

Many families are undergoing severe distress due to separation and isolation following the travel bans that have been implemented globally. The family reunion category announced by the South African Department of Home Affairs provides the perfect window of opportunity for concerned SAFFA expats abroad to be reunited with their parent(s) and/or grandparent(s) currently stuck in South Africa.

Whether these loved ones are frail, isolated, at risk to the Corona Virus in South Africa and/or if it has always been the plan to relocate them abroad, now may be opportune time to make use of the concessions to get them safely abroad, and with relaxed requirements.

Will Parents be safer in South Africa or abroad?
This is the important decision which each family needs to make, and no situation is exactly the same. On the one hand, keeping one’s parents or older generation in a familiar environment is extremely important for some.

Push factors include there being no quality of life where they are effectively in lockdown from the virus, they stay in a society not known for its remarkable degree of adherence to rules and questions on how effective the health system will deal with the pandemic. Some clients have also indicated that they would rather move their parents closer to them and a country which has already passed the “peak” and they foresee a better chance overseas than in South Africa.

Opinions are very much divided hereon, but the Department of Home Affairs should be applauded for recognizing that families with means should be allowed to reunite and there is a benefit to all where parents are safely with the children.

Application Requirements
A typical application would require a copy of valid South African passport page, a letter from the country they will be travelling to confirming admissibility, permission for transiting countries, proof of means of travel and the intended date of departure.

The international travel is however subject to South African Department of Home Affairs’s approval and which is required before one may proceed with any travel arrangements. Currently, the complexity of this process is unclear, and albeit one would expect the normal strict Home Affairs protocols to be followed, there will be the normal leniency on properly motivated cases.

Assistance for two or more loved ones
The new dispensation additionally makes provision that a ‘group application’ may be submitted to the DHA should there be more than one relative required to travel out of South Africa. This will thus be a single application and the supporting information/documentation must then be sent for each member of the group.

Where you need more information hereon, have a more complex or sensitive situation which needs assistance, more information is shared on https://www.xpatweb.com/covid-19-international-travel-for-south-africans/ and please contact travel@xpatweb.com.
 
ENDS
 
MEDIA CONTACT: Rosa-Mari Le Roux, 060 995 6277, rosa-mari@thatpoint.co.za, www.atthatpoint.co.za

ABOUT Xpatweb:
HOLISTIC EXPATRIATE SOLUTIONS
The Xpatweb group has been in existence for over 14 years and includes over 90 professionals, including immigration specialists, mobility practitioners, tax practitioners, attorneys, and chartered accountants. They offer holistic, client-centric, and fully compliant expatriate and work visa solutions. Clients can expect an exceptional end-to-end service that starts with an initial technical meeting to discuss any past challenges, a recommended optimal solution, and the creation of a roadmap and protocol for service delivery. They also offer an on-premises immigration audit service to confirm expatriate employees hold legally obtained, valid visas, and that their duties align with their visa conditions. In addition, their unique online immigration tracking system helps you to easily manage and track expatriate assignees across the globe, is fully customisable and dashboard-driven, and provides a secure repository for storing assignees’ documents.

For more information on Xpatweb please visit:
Website:  http://www.xpatweb.com/
LinkedIn: https://www.linkedin.com/company/work-permit-south-africa/
Facebook:https://www.facebook.com/xpatweb/

​

​Authors:  Darren Britz, Admitted Attorney, and Laurence Mbokwane, Tax Consultant, at Tax Consulting SA

Many South Africans who had to start working from home due to the national coronavirus lockdown imposed on businesses will not yet be able to claim “home office expenses”.

People who are in a traditional employer-employee relationship earning a salaried income have the expectation and general understanding that the employer is responsible for business expenses.

Therefor there is no automatic deduction employees can rely on to claim expenses.

The most important test for claiming expenses is that the person must have spent at least 50% of their time in a tax year working from home.

This means that people will have to continue working from home until at least the end of September for them to be able to claim (six months since lockdown).

The employee will be required to prove to the South African Revenue Service (SARS) that they have created a dedicated area in their home where they conduct their trade.

This is not simply a table in the corner of a room. It must resemble an office when SARS comes knocking.

Only then will they be able to claim expenses such as a portion of the rental or interest on bond payments, electricity costs, and other office expenses such as stationary, airtime and data costs.

Different options
There are currently two situations.

The one is where the employee takes it upon himself to incur the costs necessary to continue working from home and the employer does not reimburse his costs.

These employees are seeking some relief through deductions from their taxable income.
The other is that the employer pays an amount upfront for certain expenses.

This has the risk of attracting fringe benefits tax. It becomes a fine line whether the costs were incurred to fund business expenses or if it was used for the employee’s personal benefit.

The ideal position would be through reimbursements. It does not sound fair to the employee, but the better approach would be for them to incur the costs and then to claim it as a reimbursement from the employer.

It will be easier to submit proof (invoices and receipts) that the expense was for business purposes than having received a cash amount paid and having to prove how it was used.

If the employee and employer negotiate an arrangement for the employee to continue working from home indefinitely, it is important to obtain a letter from the employer setting out the new arrangement.

It will also be important to keep detailed records (supporting documentation) of all the expenses that will be claimed.

Abandon the claim
People who have been working from home temporarily and just “made-do” in the short term (using the dining room table as their workspace) should abandon claims for tax deductions. We would not recommend they pursue this route seriously.

However, people who earn more than 50% of their income through commission or qualify as independent contractors remain entitled to claim their businesses expenses as they have been doing before the imposition of the lockdown.

Should you still consider claiming from SARS ensure that you comply to all requirements and have your documentation and office space ready should SARS request the necessary proof.

ENDS

MEDIA CONTACT: Rosa-Mari Le Roux, 060 995 6277, rosa-mari@thatpoint.co.za, www.atthatpoint.co.za

About Remuneration Consultants:
Remuneration Consultants South Africa provides market leading remuneration and employee benefit consulting services.
Our competitive advantage is adding a layer of tax optimization to the solutions we deliver. This enables us to optimally structure your Total Rewards System from the ground up to be fully compliant, where tax is planned proactively and not a mere afterthought.
Our team consists of full-time tax attorneys, tax professionals, reward specialists, global remuneration professionals (GRP), chartered accountants, professional accountants and psychometrists.
 
For more information on Remuneration Consultants please visit:
Website: www.remunerationconsultants.co.za
LinkedIn: Remuneration Consultants
Facebook: Remuneration Consultants

Authors: Darren Britz, Attorney, Taritha Oosthuizen, Remuneration Specialist at Remuneration Specialists

Many companies are considering or are in the process of retrenching workers due to the economic woes of the country that is being exacerbated by the imposed lockdown to curb the spread of the Covid-19 disease.

A critical part of retrenchment discussions should focus on the tax consequences on the final payments.

Getting it wrong can have severe financial implications for employees.

The Income Tax Act allows for a far more favourable tax treatment on retirement, death or severance benefits. The first R500,000 severance benefit is tax free and the amount above R500,000 up to R700,000 is taxed at 18%. Tax of 18% is charged on income up to R250,900. Only R25,000 is tax free if an employee makes early withdrawals from retirement funds.

The Labour Law allows for a minimum payment of one week per completed year of service. In many instance companies are prepared to sweeten the deal if enough people take voluntary packages, thus preventing a formal involuntary process.

It is advisable to have the final agreement in writing. It does not have to be a formal legal document. The language during the discussions becomes very important.

When you talk about the retrenchment amount, you have to ask about the tax costs. Employees should ask for a very basic calculation to see what the impact of the tax liability will be.

Previous severance payments
Employees are strongly advised to remind the current employer of any previous severance payments or retirement lump sums that was paid to them. This means that the full R500,000 tax exempt amount is no longer available.

Many employees tend to forget that the R500,000 tax free amount is over their lifetime and not for every retrenchment event.

Your employer’s tax calculation will be wrong if he is not made aware of the amounts received previously. If the employer knows that your tax bill may be more because the exempt amount has been depleted or eaten into, he may offer a bigger package to put you in a better position.

Tax directives
Once the discussion is complete and the employer and employee have reached an agreement, the employer must apply for a tax directive from the South African Revenue Service (SARS) to set out the tax obligation in terms of the severance payment.

The employer will deduct the tax as indicated in the directive and pay it to SARS before the retrenchment package is paid to the employee. In many instances employees are left aghast because they received less than what they anticipated – mostly because they did not fully understand the tax consequences.

It has also happened that employers pay a severance amount but neglect to apply for a tax directive. The employee only becomes aware of the tax liability when he files his tax return months after receiving the amount and SARS taxes it as normal income.

Tax debt
Equally devastating is the realisation that the employee had outstanding tax debt which will also be deducted from the agreed amount. Debt may arise when employees neglect to file returns when they are obliged to do so.

Once the directive has been issued and the payment made to the retrenched employee their only remedy is to lodge an objection when there is a dispute.

Only the employer can request the cancellation of a directive when there are errors.  One such error - that can cost a taxpayer dearly - is when the “wrong box” on the directive is ticked.

The directive provides for severance payments, but employers have inadvertently ticked “other”, which means the amount will be taxed at normal income tax rates and not the beneficial rate for severance benefits.

Talk first, pay later
Ideally the employer should have another discussion with the employee once the tax directive has been issued and before the final payment is made.

That would be far more beneficial because the employer will be able to cancel a disputed directive and reapply with the correct information. It is a simple and easy process, but should be done before the payment is made to the retrenched employee.

Employees are not obliged to accept a voluntary retrenchment offer if the payment terms are not acceptable.

However, it would be prudent to only reject an offer if the employee is fairly certain he will survive a formal retrenchment process, or if the offer is equal or lower than what he would get with an involuntary retrenchment process where he may only receive the statutory minimum.

While retrenchment is an extremely sensitive matter, a high level of discernment, accuracy and professionalism will go a long way in ensuring that the best tax outcome is achieved.
​
ENDS

MEDIA CONTACT: Rosa-Mari Le Roux, 060 995 6277, rosa-mari@thatpoint.co.za, www.atthatpoint.co.za
​
About Remuneration Consultants:
Remuneration Consultants South Africa provides market leading remuneration and employee benefit consulting services.
Our competitive advantage is adding a layer of tax optimization to the solutions we deliver. This enables us to optimally structure your Total Rewards System from the ground up to be fully compliant, where tax is planned proactively and not a mere afterthought. Our team consists of full-time tax attorneys, tax professionals, reward specialists, global remuneration professionals (GRP), chartered accountants, professional accountants and psychometrists.
 
For more information on Remuneration Consultants please visit:
Website: www.remunerationconsultants.co.za
LinkedIn: Remuneration Consultants
Facebook: Remuneration Consultants

With the first provisional tax payment being due on 31 August 2020, there is some confusion regarding whether expatriates are deemed to be provisional taxpayers by the South African Revenue Service (SARS) or not.

Reabetswe Moloi, Expatriate Tax Attorney at Tax Consulting SA, says that an expatriate may be regarded as a provisional taxpayer if their employer isn’t registered for PAYE in South Africa.

South Africans working abroad are likely working for employers who aren’t registered for employees’ tax with SARS. In this case, they will be classified as provisional taxpayers and are obliged to submit a provisional tax return.

As of 1 March 2020, provided they meet the requirements, only the first R1,25 million earned by a South African tax resident working abroad will be exempt from tax.

Therefore, South African expatriates who remain tax residents and who either earn above the R1,25 million exemption or who do not qualify to claim the exemption should anticipate to have to pay their first provisional expat tax in August 2020” says Moloi.

Which expatriates are paying provisional tax, and why?
In South Africa, provisional taxpayers are people who earn income other than a salary.

Consequently, most salary earners do not pay provisional tax, but if a person earns extra income such as rental income from a property or other income from a trade, they will be a provisional taxpayer, even if they also receive a salary.

This general rule, however, doesn’t apply to expatriates who only earn foreign employment income.

“In terms of the Fourth Schedule of the Income Tax Act, a provisional taxpayer is defined as any natural person who derives income, other than remuneration or a natural person who derives remuneration from an employer who is not registered for employees’ tax.

Therefore, despite only earning a foreign employment income, where the employer of an expatriate is not registered for employees’ tax, the expatriate will be regarded as a provisional taxpayer and will be liable to submit a provisional tax return and make payment accordingly to SARS” says Moloi.

The benefit of provisional tax is the ability to plan and save
Provisional tax is not a separate tax that is different to income tax. It is merely a system that requires taxpayers to provide for their final taxliability in advance. 

“Where a locally registered employer would have withheld tax, the taxpayer would find - upon assessment - that their tax liability is settled.

Where a foreign employer does not withhold tax to be paid over to SARS, provisional tax ensures that the taxpayer’s tax affairs are up to date on a biannual basis and their tax liability is paid over to SARS in two separate payments in a year.

Provisional tax encourages tax planning and gives expatriates the ability to anticipate what their tax liability will be,” says Moloi.

Tax Consulting South Africa offers an Expatriate Calculation Service that helps provisional taxpayers ensure they are exercising due diligence on their tax affairs.

“The Calculation Service takes everything from fringe benefits and exchange rates to bonuses and tax credits into account to help expatriates plan and save for any tax liabilities they may have,” concludes Moloi. 

ENDS

MEDIA CONTACT: Rosa-Mari Le Roux, 060 995 6277, rosa-mari@thatpoint.co.za, www.atthatpoint.co.za
ABOUT Tax Consulting SA:
Tax Consulting SA offers a streamlined service in the calculation and filing of individual income tax returns, provisional income tax returns or any other more complex individual tax relate matters. Our highly qualified team of Tax practitioners are registered with SARS under controlling body of the South African Institute of Tax Practitioners (SAIT). As tax specialists, we remove the burden from clients to keep their tax affairs in good order, achieving optimal tax savings while ensuring full compliance.
For more information on Tax Consulting please visit:
Website:  http://www.taxconsulting.co.za/
LinkedIn: Tax Consulting South Africa
Facebook:Tax Consulting South Africa

​

Authored by: Jean du Toit, Head of Tax Technical at Tax Consulting SA

On 5 May 2020, the Commissioner for SARS made a profound media statement, which gave a detailed account of projected revenue collection in light of the COVID-19 crisis, but also gave valuable insight of what we can expect from SARS in coming months. The most important aspects of the address can be unpacked as follows:

Pensive statement – the first thing many would notice is how comprehensive this statement is, and it is clear the Commissioner poured a lot of thought into it. Arguably it was not incumbent for him to go to such lengths, but it reveals the gravity of the message he wanted to convey and also the context to what taxpayers may experience from SARS in the coming months.

SARS officials returning to work – following a period where SARS operated with staffing levels of between 15 and 30%, its employees will now start returning to work – to meet taxpayer demands and, most importantly, to deliver on its mandate to collect revenue.

Grim economic outlook – with a struggling economy pre-COVID-19, the credit rating downgrade and the prevailing crisis it is anticipated that our economy will contract by between 5.4% and 16%. Frankly this is a staggering statistic, but a crisis of this magnitude has a devastating snowball effect where we end up with less participants in the economy on the one hand and more being reliant on government support on the other.

Decreased revenue collection – April yielded a significant decline in revenue collection from the previous year, totalling a drop of R9 billion (-8.8%). The slide was experienced across all tax types – PAYE (-5.2%); domestic VAT (-4.3%); overall import tax (-19.7%); specific excise duties (-54%); and CIT (-55.4). SARS does not expect our fortunes to change any time soon and estimates that revenue collection could be R285 billion below the amount projected in the budget in February.

Job losses and failing businesses – SARS looked at the tax directives finalised during April which reveals that over 20 000 employees were retrenched during April. According to figures sourced from STATS SA, prospects for businesses look equally dire – liquidations increased by 12.3%, 46.4% of businesses have temporarily closed their doors and 54% of businesses predict they could not survive beyond the three-month mark of the pandemic.

An improved SARS – it seems we are dealing with a vastly improved SARS. The institution has shown its agility in operating effectively during these times, whilst observing the spirit of the lockdown. SARS also used this time smartly to improve the integrity and effectiveness of their systems. It is clear the Commissioner appreciates the challenge that lies ahead and he and those around him have developed a clear 3-step plan to enforce compliance and optimise revenue collection in the coming months.

Third party information – the Commissioner made it clear SARS will rely more heavily on information sourced from banks, employers, financial services companies who administer retirement funds and insurance schemes to assess taxpayers. It will also use information available from the population register, the companies register and the Deeds Office to triangulate taxpayer information. This is an encouraging initiative, as these sources were vastly underutilised in the past. Items such as rental income not disclosed will be easily detected if SARS compares its records with that of the Deeds Office.

Aggressive enforcement – the statement does not expressly warn taxpayers of this, but with the current permutations, SARS’ hands are tied; it has no choice but to extract every penny from the tax base. With the exigence to collect taxes and enhanced capacity, we are expecting more audits and a tougher SARS in the coming months. Those who historically had the nerve to try their luck with SARS should think carefully before they choose to run the gauntlet again this year.

Individual wealth no. 1 on the list – all tax types are underperforming as a result of the pandemic, but some will be under more pressure than others. Businesses are collapsing, with more to follow, and those who manage to stay afloat may report losses for the foreseeable future, which means corporate income tax will fall sharply. The contraction in the economy and the restriction of many activities mean less transactions which impacts heavily an VAT. The same rationale applies to imports and exports where customs revenue will see a significant drop, not to mention the loss in excise duties from the prohibition on sales of alcohol and tabaco. This leaves us with personal income tax where we will see a decline but perhaps not as piercing. The over-taxed minority will potentially face an even heavier burden this season, as SARS will have to extract all it can from those with the means to contribute. SARS will no longer shut its eyes to trust structures, rental properties and offshore assets.

Commissioner’s report card – Edward Kieswetter closed off by reflecting on his first year as Commissioner. Lest we forget, when he assumed his position, SARS faced a serious breakdown of governance and integrity, with structures and employee relationships left festering. From our perspective, the Commissioner is dedicated to serving a higher purpose and he has a clear vision on what he wishes to achieve, which is to restore SARS as a respected institution that serves compliant taxpayers as it should, whilst being equally tough on transgressors. Thus far, we have seen positive initiatives being rolled out in achieving this vision and while the wheels may turn slowly, SARS appears to be on the right track.

ENDS

MEDIA CONTACT: Rosa-Mari Le Roux, 060 995 6277, rosa-mari@thatpoint.co.za, www.atthatpoint.co.za

ABOUT Tax Consulting SA:
Tax Consulting SA offers a streamlined service in the calculation and filing of individual income tax returns, provisional income tax returns or any other more complex individual tax relate matters. Our highly qualified team of Tax practitioners are registered with SARS under controlling body of the South African Institute of Tax Practitioners (SAIT). As tax specialists, we remove the burden from clients to keep their tax affairs in good order, achieving optimal tax savings while ensuring full compliance.

For more information on Tax Consulting please visit:
Website:  http://www.taxconsulting.co.za/
LinkedIn: Tax Consulting South Africa
Facebook:Tax Consulting South Africa

Authored by: Jean du Toit, Senior Tax Attorney at Tax Consulting SA

On 4 May 2020, the Minister of Finance issued a telling directive in Government Gazette No. 43266, in terms of which “services required to comply with an obligation imposed by or to exercise a right in terms of a tax Act” are expressly included within the ambit of “essential financial services”.

In simple terms, the directive confirms that tax practitioners and other providers that offer these services can operate as normal.

The bigger picture
It is no surprise that tax services would fall under the umbrella of essential financial services – so it is quite interesting that the Minister decided to issue a directive to categorically confirm this. On the same day, SARS officials communicated that they will be returning to the office on 5 May 2020.

Perhaps this is purely serendipitous, or perhaps the Minister issued the directive out of necessity, cognisant that SARS will be firing on all cylinders from this week onwards.

This aligns with what we have experienced in practice, where there is a definite spike in SARS activity.

In light of prevailing circumstances, all of this makes sense – with an ailing economy, the role out a R500 billion fiscal package, together with tax relief measures valued at R70 billion and an existing budget deficit, there is an unprecedented exigence for SARS to collect revenue. Seemingly, this collection drive will now commence.

What does this mean for taxpayers?
The purpose of the directive can be interpreted in different ways, depending on your perspective.

For tax practitioners, if they had any doubt, they now know they may service their clients in an unfettered manner.

Strictly speaking, taxpayers cannot hide behind the acts (or lack thereof) of their tax practitioner, but from a SARS perspective, this kills any narrative that a taxpayer was unable to comply with their tax obligations as a result of a lack of service delivery.

Taxpayers on the other hand may see the directive as a warning – you are expected to meet your tax obligations, in spite of the current circumstances and, on all accounts, SARS will be far tougher this tax season; it simply has to be.

ENDS

MEDIA CONTACT: Rosa-Mari Le Roux, 060 995 6277, rosa-mari@thatpoint.co.za, www.atthatpoint.co.za

ABOUT Tax Consulting SA:
Tax Consulting SA offers a streamlined service in the calculation and filing of individual income tax returns, provisional income tax returns or any other more complex individual tax relate matters. Our highly qualified team of Tax practitioners are registered with SARS under controlling body of the South African Institute of Tax Practitioners (SAIT). As tax specialists, we remove the burden from clients to keep their tax affairs in good order, achieving optimal tax savings while ensuring full compliance.
​
For more information on Tax Consulting please visit:
Website: http://www.taxconsulting.co.za/
LinkedIn: Tax Consulting South Africa
Facebook: Tax Consulting South Africa
​

Authored by: Marisa Jacobs, Managing Director at Xpatweb.

There are many foreign national workers under lockdown in South Africa, which remains one of the least affected countries in the world in terms of Covid-19 cases.

There is a common misconception amongst foreign nationals in South Africa, whereby they believe that nothing can be done to resolve their visa issues during lockdown.

The negative consequence of this belief is that if one does nothing now, you will be faced with an immense backlog that the Department of Home Affairs (DHA) and the VFS is expected to deal with post-lockdown; and you do not want to be found on the wrong side of an expired work visa.
Below a few key reasons to get started right away;

1. Be proactive - Get ahead of the queue!
While applications cannot be filed during lockdown, expats and their employers must use this time to prepare these applications and book an appointment to ensure applications can be filed as soon as possible after  lockdown has been lifted.

Preliminary feedback from the latest Xpatweb 2020 Work Visa Risk Impact Survey shows that 70% of expatriate employers in SA have employees with visas that have already expired, or are due to expire soon, thus indicating there will be a flood of applications to Home Affairs post-lockdown.

Some proactive planning will ensure you are ahead of the rush.

2. Upon Upliftment, you will again be forced to travel for renewals
Certain classes of visa renewals, such as -

• intra-company transfer work visas,
• corporate visa holders, and
• short term business or work visas;

will require travel back home for renewal. However special dispensations have been made available to assist these visa holders who cannot travel due to international travel bans.

When travel restrictions are lifted, the special dispensation will cease, and expatriates will be forced to travel back for their visa renewal.

Getting your extension in South Africa under the current special dispensation means a significant saving in cost and time, as well as not being forced to travel at an inconvenient time and removes the uncertainty that comes with visa renewals in certain foreign countries.

3.Uncertain future of work visas
In these unprecedented times, many processes are fast changing.

This causes uncertainty of what will be required going forward, including the possibility of needing health certificates and/or being forced to quarantine for an extended period of time.

Until the special dispensations are revoked, you operate in a very clear cut and well administered system, provided you follow the rules and regulations.

Additional considerations to take into account include;

Review your current work visa category
The main reason to change your work visa status is to fall into a better category. This generally refers to a category which allows longer or indefinite stay, or which grants you access to permanent residency or South African citizenship status.

The current environment is ideal for a discussion on an immigration expert on the categories available and how to optimally plan your future.

Avoid being a victim of Work Visa Malpractice
There are many foreigners who have fallen foul of immigration malpractice by unscrupulous advisors, as the advisor is in a position of trust.

One scheme is where a visa category is advised which is well known will cause considerable delays or will never be issued. Payment is charged upfront.

Then additional payments are demanded or the ‘ball is kicked down the road’ when you enquire on your application status, with the Department of Home Affairs unfairly blamed. Often this comes with the promise of special contacts or forever a great excuse why there are no results.

There are formal processes in place to determine your status and see whether what has been advised is the truth. Where you have a feeling something is not right, your instincts are normally correct.

An approach of prudence and urgency is to be encouraged to avoid later disruptions.

Closing remarks
Now is the opportune time to start your visa renewal process. This prevents being caught in an expected rush later when restrictions are lifted, or processes adjusted to accommodate the different levels of restriction.

A proactive approach will stand business in good stead to resume activities and focus on core business items rather than expatriate compliance 

ENDS

MEDIA CONTACT: Rosa-Mari Le Roux, 060 995 6277, rosa-mari@thatpoint.co.za, www.atthatpoint.co.za

ABOUT Xpatweb:
HOLISTIC EXPATRIATE SOLUTIONS
The Xpatweb group has been in existence for over 14 years and includes over 90 professionals, including immigration specialists, mobility practitioners, tax practitioners, attorneys, and chartered accountants. They offer holistic, client-centric, and fully compliant expatriate and work visa solutions. Clients can expect an exceptional end-to-end service that starts with an initial technical meeting to discuss any past challenges, a recommended optimal solution, and the creation of a roadmap and protocol for service delivery. They also offer an on-premises immigration audit service to confirm expatriate employees hold legally obtained, valid visas, and that their duties align with their visa conditions. In addition, their unique online immigration tracking system helps you to easily manage and track expatriate assignees across the globe, is fully customisable and dashboard-driven, and provides a secure repository for storing assignees’ documents.

For more information on Xpatweb please visit:
Website:  http://www.xpatweb.com/
LinkedIn: https://www.linkedin.com/company/work-permit-south-africa/
Facebook:https://www.facebook.com/xpatweb/

Authored by: Janine O’Riley, Reward specialist at Remuneration Consultants & Tanya Tosen, Tax & Remuneration specialist at Tax Consulting SA
​
The COVID-19 outbreak has propelled countries around the world to implement strict measures to combat the virus. President Cyril Ramaphosa imposed minor restrictions on gatherings and alcohol sales as a start.

These measures quickly escalated into a declaration of a national disaster to a complete lockdown period of 21 days with a further extension of 2 weeks.

The economic impact of such drastic measures is proving to be a massive blow to the already struggling economy of South Africa.

Employers are faced with a unique situation that require a sharp and tactful approach to balance the payment of employee salaries, looking after the individual employee needs and keeping the business afloat.

Between a rock and a hard place
While salary cuts and reduced working hours are realities many South Africans are facing currently, another mechanism employers can implement is to allow employees to identify what their suitable blend between cash and benefits are, based on their individual needs.

This involves offering employees the opportunity to make certain changes regarding their benefits vs cash portion of their overall remuneration package. Employers need to be innovative to optimally utilise flexible benefits according to employees personal and financial requirements.

How does this help your employees?  It empowers them to exercise the choice on how to structure their package according to their personal and financial requirements.

An easy way to understand this can be illustrated in the below two examples:

Scenario 1
A family member currently on their medical aid might be sick and in the hospital so they would choose to keep their current medical aid choice as is, or if they might have an immune compromised member of the family on their medical aid – they would rather choose to move to a more comprehensive plan reducing their cash portion but providing peace of mind that should their loved one need medical care they would be sufficiently covered.

Scenario 2
Similarly a employees’ spouse might have been affected by retrenchment and the family is in much need of more cash to cover day to day essentials – so they might opt to reduce their pension contributions for the time being in order to increase the cash portion of their package as this is what they need most in their situation.

By providing employees with the above structuring options two things happen –
{1} You empower your employees regarding their personal choices which makes sense to their individual needs in a time where so much power over your own decisions have been taken away – ultimately leaving them with a sense of security on various levels.

{2} The employer will experience more focussed employees not being weighed down with the burden of how they will make ends meet, thereby enabling them to be more productive. 

What’s in it for the Employer?
By implementing the above structure, the employer ensures that there are no extra costs in terms of their existing salary bill. 

This should also be an employer’s key focus now, where salary increases may become non-existent in 2020 and possibly thereafter.

Providing employees with the flexible benefits option is a cost neutral exercise for the company where the employees package value is exactly the same before and after implementation.

The only difference is that the benefit structuring within the same cost structure is just different. 

What if I don’t have a flexible benefit structure in place?
Should this be the case it is a good time to implement firstly a Cost to Company salary structure, and then consider flexible benefits as an additional offering to compliment the structure.  This is really where the value in a cost to company structure lies.

The perfect accompanying tool for this implementation is a Package Structuring Tool (PST). This will enable each employee to make changes to their package as it suits their current circumstances and immediately see the effect of their choices on the tool.

In doing so they are able to try different scenarios to see what changes would best suit their needs also illustrating the direct impact their selections will have on the net take home pay.  They then sign off their final selections to be implemented on payroll.

In a time where costs are being scrutinised as part of the company’s bottom line this is a win-win situation for both employers and employees alike.

ENDS


MEDIA CONTACT: Rosa-Mari Le Roux, 060 995 6277, rosa-mari@thatpoint.co.za, www.atthatpoint.co.za

About Remuneration Consultants:
Remuneration Consultants South Africa provides market leading remuneration and employee benefit consulting services.
Our competitive advantage is adding a layer of tax optimization to the solutions we deliver. This enables us to optimally structure your Total Rewards System from the ground up to be fully compliant, where tax is planned proactively and not a mere afterthought.
Our team consists of full-time tax attorneys, tax professionals, reward specialists, global remuneration professionals (GRP), chartered accountants, professional accountants and psychometrists.
 
For more information on Remuneration Consultants please visit:
Website www.remunerationconsultants.co.za
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Authored by: Lerato Mahupela, Immigration Specialist at Xpatweb 

Worldwide travel restrictions are accompanied by various national strategies aimed at limiting the movement of people to prevent transmission of COVID-19.

One of the global strategies has been to shutdown major port of entries, such as airports and border posts. This has left many travelling South Africans stranded in foreign countries and who are now unable to return home to their families.

This is creating panic and uncertainty for travellers who cannot afford to book further accommodation or carry further living expenses in those countries.

Following a Pretoria press briefing on 31 March 2020, the International Relations and Cooperation Minister Naledi Pandor said that the Department empathises with their plight and are doing whatever is within their means to assist them to be safe and to repatriate them back to South Africa.

The Minister confirmed that, of the total 1 471 stranded citizens, 723 are students, 204 are workers, 224 are tourists and 320 have not disclosed their status. "I cannot say that these numbers are 100 percent accurate as it is based on people who have approached us for assistance through our missions and consular services.  There may be more people in need of assistance that we do not know about yet," said Pandor.

Government’s approach to assist those stranded abroad
Many South Africans are experiencing difficulties in accessing documents and services in South Africa that enable them to extend their visa in the host country. This includes extension of travel insurance and other documents as may be required by the local authorities per the visa concessions made available during this lockdown period.

Most South African missions have closed following the 21day lockdown announced by President Ramaphosa and officials have been working remotely to assist the repatriation process for stranded South Africans.  The Minister has moved to assure family members of those stranded abroad by saying that "our missions, where possible, will continue to render consular services, including negotiating with the governments where there are lockdowns, in order to facilitate the movement of stranded South Africans."

The Department will prioritise those who were most distressed – passengers stranded at airports, or running out of accommodation options, as well as the elderly and the sick.  This include evacuation flights, possibly using South African Airways aircraft.

For those who already purchased return air tickets to South Africa, Pandor said they should try to return back home at their own cost, by arranging with airlines they bought ticket from. She appealed to travel agents and airlines to accommodate and rebook these passengers on different dates as the airlines would now be allowed to fly to South Africa to bring back South Africans.

For the rest of the South Africans who may not be stranded or distressed, they were advised to remain put to reduce movement until the end of the lockdown.

Can foreign authorities abroad assist stranded South Africans?
Our Missions were also tasked to also determine whether the authorities from host countries can offer any assistance to stranded South Africans due to the COVID-19 pandemic, for example by issuing extension of visas. President Ramaphosa has advised that he is working on the matter together with the Department of International Relations and Cooperation and various missions abroad.

The Consular Services Unit at DIRCO Head Office is monitoring calls of stranded South Africans daily to ensure that they are informed all the time and will continue to be in touch with all South Africans until they are comfortably reunited with their families.

To make it easier for people who are unable to make contact with the Missions abroad, the Department has established a 24-hour Command Centre.  The Command Centre contact details are as follows; +27 12 351 1754; +27 12 351 1756, emails: Cicc1@dirco.gov.za and Cicc2@dirco.gov.za.

All South Africans re-entering the country will be subject to screening and quarantining for a 14-day period.
Xpatweb will continue following up on the above matters and advise as soon as we have further updates.

ENDS

MEDIA CONTACT: Rosa-Mari Le Roux, 060 995 6277, rosa-mari@thatpoint.co.za, www.atthatpoint.co.za

ABOUT Xpatweb:
HOLISTIC EXPATRIATE SOLUTIONS
The Xpatweb group has been in existence for over 14 years and includes over 90 professionals, including immigration specialists, mobility practitioners, tax practitioners, attorneys, and chartered accountants. They offer holistic, client-centric, and fully compliant expatriate and work visa solutions. Clients can expect an exceptional end-to-end service that starts with an initial technical meeting to discuss any past challenges, a recommended optimal solution, and the creation of a roadmap and protocol for service delivery. They also offer an on-premises immigration audit service to confirm expatriate employees hold legally obtained, valid visas, and that their duties align with their visa conditions. In addition, their unique online immigration tracking system helps you to easily manage and track expatriate assignees across the globe, is fully customisable and dashboard-driven, and provides a secure repository for storing assignees’ documents.

For more information on Xpatweb please visit:
Website:  http://www.xpatweb.com/
LinkedIn: https://www.linkedin.com/company/work-permit-south-africa/
Facebook:https://www.facebook.com/xpatweb/

Authored by: Jean du Toit, Tax Attorney at Tax Consulting SA 

Following announcement of the actions taken by government to combat the COVID-19 crisis, many South Africans may be aware of the proposed tax measures that are effective from 1 April 2020.

There is, however, an additional fiscal measure under the Value-Added Tax Act No. 89 of 1991 (“VAT Act”) that has been implemented that may have gone unnoticed.  

Our analysis on fiscal relief measures initially proposed, stressed the importance of bringing the VAT system into the equation, albeit in a different context.

VAT relief
When the Regulations under the Disaster Management Act No. 57 of 2002 were published on 25 March 2020, it effectively made provision for this exemption by providing for the definition of “essential goods”, which include:
-       Food - Any food product, including non -alcoholic beverages; animal food; and chemicals, packaging and ancillary products used in the production of any food product.

-   Cleaning and hygiene products - Toilet paper, sanitary pads, sanitary tampons, condoms; hand sanitiser, disinfectants, soap, alcohol for industrial use, household cleaning products, and personal protective equipment; and chemicals, packaging and ancillary products used in the production of these items.

-       Medical - Medical and hospital supplies, equipment and personal protective equipment; and chemicals, packaging and ancillary products used in the production of any of the above.

-        Fuel – including coal and gas.

-        Basic goods – including airtime and electricity.

SARS announced on 27 March that items falling within this definition will fall under Item 412.11 of Schedule 1 to the VAT Act. Schedule 1 must be read with section 13(3) of the VAT Act, which provides for the exemption.

There will also be a full rebate of customs duty in terms of item 412.11 of Schedule 4 of the Customs and Excise Act No. 94 of 1964.

This initiative should stimulate the importation of essential goods, whilst providing much needed relief for vendors who would not be required to pay input VAT to SARS (see additional discussion on alternative VAT measures here).

Word of caution
With the increased demand for these goods, and with the VAT exemption on importation, business owners may be tempted to diversify their trade and capitalise.

However, it is important to note that the importation of goods under this item in Schedule 1 is not unconditional.

Businesses who wish to import these goods must obtain a certificate from the International Trade Administration Commission and may be subject to any further conditions agreed to by the Governments of the South Africa, Botswana, Lesotho and Swaziland.

Naturally, relief measures must be implemented with haste, which means there may be some practical hurdles for taxpayers, especially in complying with any formalities.

Whilst it is very difficult to avoid these issues, where there are hindrances in obtaining certificates for example, the impact of the relief is somewhat compromised.

Work in progress
Governments around the globe are traversing uncharted waters at a very high pace, which simply means that no one has the wisdom on the best way to survive the crisis from a fiscal perspective.

The South African government appears to be paying attention when the private sector weighs in, which is an encouraging sign, as it continuously develops fiscal relief.

For example, the relief package was expanded between the time the initial explanatory notes were published (29 March) to when National Treasury published the draft bills on 1 April.

The Organisation for Economic Co-operation and Development (“OECD”) provides another perspective by compiling the various relief measures imposed by countries across the globe.

The South African context is undoubtedly a unique one, but this is an invaluable contribution by the OECD that the government must utilise.

Overall, government must be commended for the swift action it has taken in these times, even though we may encounter several kinks along the way.

ENDS

MEDIA CONTACT: Rosa-Mari Le Roux, 060 995 6277, rosa-mari@thatpoint.co.za, www.atthatpoint.co.za

ABOUT Tax Consulting SA:
Tax Consulting SA offers a streamlined service in the calculation and filing of individual income tax returns, provisional income tax returns or any other more complex individual tax relate matters. Our highly qualified team of Tax practitioners are registered with SARS under controlling body of the South African Institute of Tax Practitioners (SAIT). As tax specialists, we remove the burden from clients to keep their tax affairs in good order, achieving optimal tax savings while ensuring full compliance.

For more information on Tax Consulting please visit:
Website:  http://www.taxconsulting.co.za/
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