Earlier this month, the Department of Home Affairs published the revised – and much anticipated – requirements for obtaining a remote work visitor visa, and introduced a new and innovative points-based system for work visas under the Third Amendment of the Immigration Regulations (‘the Regulations’). The reform of the country’s visa requirements is part of the Government of National Unity’s broader efforts to attract foreign investment and stimulate job creation.
Designed to reframe South Africa as a ‘world-class destination’ for investors and tourists alike, the revised regulatory framework allows high-income earners employed abroad – digital nomads – to spend their foreign currency in South Africa and pay VAT on goods and services whilst working remotely. To facilitate this objective, the amended Regulations lower the minimum qualifying income threshold for employed digital nomads from the equivalent of R1 million per annum to the equivalent of R650 976 per annum.
Previously, the Regulations exempted foreign remote workers from registering with SARS in instances where their visas were issued for six months or less during a 12-month period. Now, the Regulations specify that foreign remote workers, who are tax resident in a jurisdiction with a Double Taxation Agreement (‘DTA’) in place with South Africa, must register with SARS if they are present in the Republic for an aggregate of 183 days or more during any 12-month period. Conversely, remote workers from jurisdictions that have not concluded a DTA with South Africa are required to register for tax, irrespective of their duration of stay in the country.
In a bid to combat corruption and lessen bureaucratic hurdles, the Regulations introduce a novel points-based system for issuing general work visas or critical skills visas to qualifying applicants. Under the Regulations, the Minister is empowered to consider various factors in determining the points-based system, including qualifications, work experience, salary, and language skills. Importantly, this competitive points scale encourages the injection of higher-level skills and safeguards lower-income earners.
While Home Affairs prepares for a full digital transformation to online applications and adjudication, individuals applying for the various work-related visas under the new points-based system may continue to submit their applications through appropriate service providers and South African missions located abroad.
View the amended Regulations here.
