South Africa Policy, Plans and Priorities
Foreign Employment & Residence
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- 1.10Foreign Investor Access to Land and Property Rights
- 1.11Employment
- 1.12Business Taxation
1.9Foreign Employment & ResidenceThe Department of Home Affairs website http://www.home-affairs.gov.za/ provides access to all laws and regulations regarding immigration and work permits including the Immigration Act 2002 as amended in 2004. Application forms are available on-line. General Work Permit: an employer must first attempt to employ a South African citizen or resident by advertising in the national print media. If a suitable candidate cannot be found, the position can be offered to a foreign national. Quota Work Permit: for employment of highly skilled foreign nationals. Each year the Government publishes a critical skills list setting out specific professional categories and skills with a numerical quota. Where a job position is listed the prospective employer does not have to advertise the position. Exceptional Skills Work Permit: where an individual can show exceptional skills and how these would be to the advantage of the South African economy. Intra-Company Work Permit: An employer can apply for an intra-company temporary residence work permit for key or senior employees if the employee is required to work in South Africa and is being transferred from a branch, subsidiary or affiliate abroad. This permit cannot be renewed and is limited to three years. Business Permit: applies to owners of businesses who are investing in starting up or acquiring a business in South Africa. An applicant must show that a feasibility and viability study has been prepared and included in a substantive business plan. The business must have a capitalisation of R2.5m (about €250,000), a commitment to employ at least five South African citizens or residents, and an undertaking to register with the South African Revenue Service (SARS). 1.10Foreign Investor Access to Land and Property RightsThere are no restrictions on property ownership by non-residents provided that there is compliance with procedures, including the local registration of entities registered outside of South Africa, and the appointment of a South African resident public officer for a South African registered company owned by a non-resident. If a non-resident purchases property with the intention of residing in South Africa for long periods, then application should be made for permanent residency. Non-residents may borrow up to 50% of the purchase price in South Africa, but must transfer the other 50+% to South Africa from a recognised foreign bank. Alienation of Land Act, No. 68 of 1981 regulates the alienation of land in certain circumstances and provide for connected matters. Private, State, Provincial, Municipal and Parastatal lands are potentially available for development use with different application processes. Zoning for physical planning is handled by local authorities generally in accordance with the National Development Act. There is one process for the transfer of land and a good system of land registration. The Mineral and Petroleum Resources Development Act (MPRDA) regulates the issuing of licenses for prospecting and exploration of minerals and rehabilitation of land surface from prospecting and mining operations. Mineral rights are vested in the State. The Broad Based Socio-Economic Empowerment Charter for the Mining Industry (Mining Charter) must be complied with to facilitate the entry of historically disadvantaged South Africans into the mining sector.
1.11EmploymentThe Department of Labour website http://www.labour.gov.za/ contains details and guides to employment legislation including the following. Employment Equity Act 1998 prohibits all forms of unfair discrimination at work and required all enterprises employing more than fifty employees to take affirmative action to bring about a representative spread of designated groups in all occupations and organisational levels within defined time periods. Labour Relations Act encourages and regulates collective bargaining, sets up Commission for Conciliation Mediation and Arbitration (CCMA) which is responsible for dispute resolution, the Labour Court responsible for retrenchment etc and review of CCMA decisions and Labour Appeal Court for appeals from decisions of the Labour Court. Basic Conditions of Employment Act sets out minimum requirements for working hours, leave and all other basic employment conditions. 1.12Business TaxationNew enterprises file with SARS for income tax, value added tax (VAT), employee tax – standard income tax on employees (SITE) and pay as you earn (PAYE). Corporate income tax rate is 28% and there is also a 12.5% secondary tax companies (STC) levied on declared dividends. Foreign resident companies that earn income from a South Africa source face a tax rate of 33% as STC is not payable by a foreign resident company. Value Added Tax VAT is levied on domestically produced and imported goods and services at a standard rate of 14%. Exports, some basic foodstuffs (e.g. brown bread, maize meal, eggs, milk, fruit, and vegetables), goods used or consumed for agricultural, pastoral or other farming purposes (e.g. animal feed, seed, fertilizers, pesticides, and animal remedies), fuels (lighting paraffin, diesel, and gasoline), and international transport of goods and passengers are zero-rated. Goods and services exempt from VAT include financial services, donated goods or services or any other goods made or manufactured with donated inputs, the supply of residential accommodation, educational services and transport services. VAT is not payable on temporary imports and imports for export-processing. VAT is levied on the domestic open-market value for goods and services produced in South Africa. VAT is levied on the duty-inclusive free on board (fob) customs value of imports (i.e. the fob customs value plus the amount of any non-rebated customs duty), uplifted by 10%. The additional 10% is included to adjust for the customs valuation on the fob value rather than the cost, insurance and freight (cif) value. Export Levy South Africa levies a diamond export levy on the value of exports of unpolished diamonds to promote the development of the local economy, develop skills, and create employment. Exports of unpolished diamonds are prohibited unless undertaken by a producer, a manufacturer (synthetic diamonds), a dealer, or a holder of an export permit. There are also export levies on citrus fruit (R 0.0213 per kg) and wine (in bulk R 0.05 per litre and R 0.08 per litre otherwise). Customs Customs and Excise Act 91 of 1964 (C&E Act) customs duties levied by South Africa in terms of the C&E Act are also levied by the other SACU member states. The C&E Act consists of twelve Chapters, twelve Chapters to the Rules, ten Schedules to the C&E Act and one Annexure. The latter includes South African trade agreements with Zimbabwe and Malawi, a Free Trade Agreement with the European Community, the Trade, Development and Cooperation Agreement (TDCA) and the SADC Trade Protocol. Directory: files files -> Answer True False 2 points Question 2 files -> Integer programming and game theory files -> 4 Integer Programming files -> Bpa vehicle Window Repair Scenario #1 task: Procure vehicle window relacement. Objective files -> Pop Warner History files -> North Carolina Inclusion Initiative Mapping Where Children with ieps are Being Served Purpose files -> Fall 2013 Spring 2014 Program Data: Standard 1 Exhibit 4d files -> Hanban – asia society confucius classrooms network 2010 request for proposal files -> Northern England’s set-jetting locations Download 410.91 Kb. Share with your friends:
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