South Africa’s plan to boost its skills-starved economy by introducing a “nomad visa” for remote workers has encountered delays due to pending tax regulation changes.
This comes after an initial hold-up when proposed modifications to the visa policy had to be withdrawn for not meeting mandatory public consultation requirements.
President Cyril Ramaphosa first announced the remote-working visa initiative during his 2022 State of the Nation address.
“There is just a tax-related matter that needs to be addressed in the regulations,” stated Home Affairs Minister Leon Schreiber. “Once that is done, the department will commence with the roll-out.”
The country’s complex work permit system, which can take more than a year to secure, has been widely criticised by the presidency and major business organisations as a major hurdle to economic growth.
However, some progress has been made: the backlog of over 300,000 residence permit applications has been halved since the formation of a coalition government and the announcement of a new cabinet on June 30.
The home affairs ministry initially suggested that foreign-employed remote workers could live in South Africa for up to six months without paying local taxes, provided they earn at least $56,669 annually.
The plan now awaits a resolution on the tax front before moving forward, leaving the country’s ambitions to attract global talent in a state of limbo.
