(Bloomberg) — South Africa’s plan to attract more professionals to its skills-starved economy by introducing a so-called nomad visa for home-based workers has been delayed by the need to overhaul tax rules.
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The impediment comes after an initial delay when changes to the visa regime had to be temporarily withdrawn because mandatory public consultation procedures had not been followed. President Cyril Ramaphosa announced his intention to introduce a remote work visa in his 2022 State of the Nation Address.
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“There is only a tax-related issue that needs to be included in the regulations,” Leon Schreiber, the country’s interior minister, said in response to questions. “Once that is done, the department will start the rollout.”
South Africa’s complicated work permit system, which can take more than a year to obtain, has been identified by both the president and the country’s leading business groups as an obstacle to economic growth.
However, the 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 following the formation of a coalition government.
The Home Office initially proposed allowing people employed elsewhere and paid by companies to live in the country for up to six months a year without paying tax, provided they earn at least R1 million ($56,490) annually.
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