EXPATRIATE TAX LAW CHANGE & MOZAMBIQUE IMMIGRATION REGIME
Following the positive feedback received from our sessions held in the Democratic Republic of Congo (DRC) during February, we are delighted to announce that Johnnie Kruger (Senior Admitted Attorney at Tax Consulting SA) and Tarissa Wareley (Head of Africa Desk at Xpatweb) will be hosting a webinar on #ExpatTax2020 law changes and Mozambique Immigration regime.
The Mozambique Webinar comes hot off the heels of the discovery of natural gas which has paved the way for Mozambique to become the next major supplier of liquified natural gas. This has led to a massive demand for skilled South African expatriates to lead the projects in the region, with these expatriates and their employers reaching out to us to provide advice from a tax and immigration perspective.
Johnnie Kruger will provide much needed clarity on the impact of the expat tax law change and possible solutions available. He will address the first provisional tax payment for South African rotational workers which is due to SARS in August 2020. As such, one needs to be cognisant of the possible tax liability and plan accordingly to avoid massive tax penalties.
He will also discuss the fundamentals of international tax vs. South African tax and the principle that South Africans must always have a tax protection strategy.
Tarissa Wareley will represent Xpatweb, which is the largest independent work permit practice in South Africa. Tarissa will discuss the difference between business trips, and what is construed as work activities in Mozambique for short-term periods as well as avoiding having penalties and fines issued for non-compliance. Since the number of LNG and construction projects has skyrocketed in the last 12 months leading to an increase in Immigration and Labour inspections in Mozambique.
KEY AREAS OF THE WEBINAR
Johnnie’s Key Areas:
• Dealing with the fundamentals of international tax vs. South African tax and the principle that South Africans must always have a tax protection strategy;
• The history to the expatriate tax law change and the not widely reported primary motivations for the expat tax law change;
• Financial Emigration – when is this viable and when not, criticism and opportunity;
• South Africa / Mozambique Double Tax Agreement – when is this viable and when not, risks and opportunity;
• Planning considerations where Financial Emigration and / or Double Tax Agreement relief not possible, including compliance strategy;
• Retirement in South Africa, tax risks associated with ‘end of service’ gratuity and other lump sums, tax considerations for continued South African investments especially into retirement
vehicles, rental properties SARS audit approach etc;
• Inheritances from or to family in South Africa, donations’ tax, forex and exchange control planning for inward and outward remittances;
• Common Reporting Standards, criminal offences standards, optimal tax planning and caveat against various tax ‘schemes’ being punted;
• LexisNexis guide on Expatriate Tax. Tarissa’s Key Areas:
• Considerations for short-term work-related trips in Mozambique;
• Quota requirements for hiring foreign nationals;
• Layered nature of the immigration process in Mozambique.
ABOUT THE AUTHORS
Johnnie Kruger is a tax attorney at Tax Consulting SA. He holds a BCom in Law and LLB both obtained from the University of Pretoria. His areas of expertise include legal issues pertaining to personal income tax (PIT), Voluntary Disclosure Programmes, Tax Opinions, Trusts and Contracts. He comes from a strong litigation background.
Tarissa Wareley is an Immigration Specialist at Xpatweb, Head of Africa Desk. She holds a BA in International Relations obtained from the University of South Africa. She has over 4 years’ experience in handling immigration matters in Mozambique, and other African countries such as Angola, Nigeria, Equatorial Guinea, Madagascar, and Mauritius and more. Her main areas of focus is offering strategic advice tailored to the project at hand for the quickest, and most compliant option for successful kick off. She is also fluent in Portuguese and English and some knowledge of Spanish.