The new financial year is here, bringing new and significant changes to New Zealand’s taxation & payroll. As a business, it is essential to remain up to date on new emerging payroll trends. 2021 comes with a new suite of major changes in employment legislation, and we are here to uncover all the latest… Read more »
Networking is an essential part of professional life. While it might not be crucial in every field, the importance of networking should never be underestimated. So what is networking? Essentially, networking is the act of creating connections with colleagues, clients and experts in your field. There is a perception that networking is a shallow… Read more »
With the world becoming a global village of sorts, more and more businesses are looking to scale-up and dip their toes in international waters. But when looking to expand, the question beckons, “how can one focus on growing a business, as well as make sure it remains compliant at the same time?” The answer… Read more »
There are many advantages to outsourcing your human resources function, especially when you’re a foreign company looking to explore a new market or expand to a new country. While it might initially seem counterintuitive to let a third-party vendor handle a business area as interpersonal as HR, outsourcing it doesn’t actually take away from… Read more »
Now that you’ve found your dream job in France, how do you get shortlisted with that perfect CV? It’s important to remember that every country has its own CV standards to abide to. This may impact the structure, length, and general format among other things. Depending on the industry type, even the tone that… Read more »
Friday, 12 February 2021 marks the beginning of the new lunar year. This year will be the Year of the Ox. The second of all zodiac animals. Also known as Chinese New Year, Spring Festival, or Chunjie (China); Tet (Vietnam); Seollal (Korea); or Losar (Tibet), Lunar New Year is celebrated by about 1.5 billion people around the… Read more »
Do you feel a sense of stigma when negotiating your salary? Feel uncomfortable when placing emphasis on your salary package? This feeling can be magnified in times like COVID-19, when the job market is oversaturated and the future seems uncertain. Whilst this is true, negotiating a fair salary is not only valid and reasonable,… Read more »
We’re thrilled to share that Polyglot Group is now certified for Business France’s Cheque Relance Export! But wait a second… What is it and why does it matter? What is the Cheque Relance Export? For those of you who don’t speak or understand French, “Relance Export” translates to “Reboot Trade”. Unsurprisingly, since COVID-19, businesses… Read more »
Company culture is the heart of a business, a set of shared beliefs adopted by all the people in the organisation and supporting its strategy and structure. According to Deloitte’s research, 94% of executives and 88% of employees believe strong company culture is essential for a thriving business. In today’s day and age, employees… Read more »
On the 30th of January 2020, the World Health Organisation’s Director – General declared a Public Health Emergency of international concern due to the COVID-19 pandemic. This marked the beginning of a domino effect that would shape our current job market. Indeed, the dynamics that once drove the recruitment industry changed dramatically as governments… Read more »
Located at the southernmost tip of Africa, South Africa is the 25th largest nation in the world by total area and is wedged where the Atlantic Ocean meets the Indian Ocean.
South Africa has 3 capital cities: Pretoria/Tshwane (administrative), Cape Town (legislative) and Bloemfontein (judicial).
The country has 9 provinces: Eastern Cape, the Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, the Northern Cape, North West and the Western Cape.
The population is around 58 million. The country is ranked 24th in the world by population size. South Africa has a very young population, with a median age of 27 years old. The country has 11 0fficial languages: Afrikaans, English, Ndebele, Pedi, Sotho, Swati, Tsonga, Tswana, Venda, Xhosa, and Zulu.
South Africa’s economy grew by 0.8% in 2018 and should continue to grow at a higher rate in the coming years. It is ranked 31st worldwide with a total GDP of $376 billion (2018).
Finance, real estate and business services are the biggest contributors, responsible for 22% of the national GDP.
Mineral resources are a major export asset to South Africa. The country has the world’s 34th largest export economy.
Its main international trade partners are Europe (namely Germany, Spain and the UK), the United States, China & Japan. South Africa has an ongoing trade connection with China. China represents its top export destination, and South Africa enjoys a high volume of Chinese imports.
The country also has a strong relationship with Australia; both members of the Commonwealth. South Africa is also Australia’s largest export market and its most significant investment partner in Africa.
The country is the world’s largest producer and exporter of gold, platinum, chrome and manganese and the fourth-largest producer of diamonds. Gold represents 15.6% of total exports. Its top imports are crude petroleum, refined petroleum, cars, gold and broadcasting equipment.
South Africa has a Customs Union Agreement, as well as Free Trade Agreements with several countries. The Southern African Customers Union exists between South Africa, Botswana, Lesotho, Namibia and Swaziland.
Within Africa, South Africa is part of the Southern African Development Community (SADC) FTA, together with 15 other member states. With Europe, South Africa is part of the Trade, Development and Cooperation Agreement (TDCA).
South Africa is also part of the EFTA (Iceland, Liechtenstein, Norway and Switzerland) to reduce tariffs on selected goods.
Expanding to South Africa? Here is a breakdown of the key things to keep in mind.
There are two types of business setup in South Africa: a South African subsidiary and “external company”. However, to be registered as a South African subsidiary, at least one of the incorporators must hold a South African visa.
External companies wishing to expand to South Africa do not need a South African visa. However, they must inform the Companies and Intellectual Property Commission (CIPC) with the different required documents within 20 business days of starting to ‘conduct business’ locally.
Setting up a company in South Africa requires a minimum paid-up share capital of 1 USD. A South African LLC can be 100% foreign-owned as only one director and one shareholder must be appointed.
All South African companies must comply with annual, bi-annual and monthly PAYE (Pay As You Earn tax), UIF (Unemployment Insurance Fund) and SDL (Skills Development Levy) requirements.
The law demands that if you employ one or more staff members who earn over R40,000 per year, you have to register your company for PAYE.
There are two monthly deadlines in terms of PAYE. First, you need to submit your Monthly Employer Declaration (the EMP201 form). Then, you need to pay your PAYE before the 7th of the following month.
The UIF contribution amounts to 2% in total and there is a cap of R148.72.
If your payroll is more than R500,000 a month, you must register for the skills development levy (SDL). These funds go towards developing and improving the skills of employees.
Foreign nationals are advised to seek professional advice when considering external companies, as South Africa does not have dual taxation treaties with all countries.
The unemployment rate is quite high in South Africa, at 27.1% (2018).
South African law distinguishes between employees and independent contractors.
From 1 January 2019, no worker must be paid below the national minimum wage, which is currently set at R20 per hour.
Around 7% of the population holds a university degree. This may affect businesses looking to hire from the local workforce. The workforce is multilingual, however, as South Africa has 11 official languages and numerous indigenous languages.
To work in South Africa, you will need to apply for a work visa before arriving. You can apply at the South African embassy or consulate in your home country. Apply at least six weeks before you leave your own country to come to South Africa.
There are different types of work visas; however, all work visas require that the holder have a sponsoring employer in South Africa.
Your South African work visa acts as your temporary residence visa.
Corporate worker certificates are applicable in cases where an employer wishes to employ many foreign workers for a limited time period. These are now issued for a maximum period of three years, and the worker’s spouse and children do not qualify for visas by extension. For workers’ families to accompany them to South Africa, the dependents must qualify independently for their own visas.
South Africa is a high tax country; government revenue comes primarily from income tax, value-added tax (VAT) and corporation tax.
For companies, the tax year is the same as the accounting year. For individuals, the tax year begins on 1 March and ends on the last day of February of the following year (i.e. 28th or 29th).
The corporate tax is 28%. The VAT is 15% (since 1 April 2018).
Individual income tax rates in South Africa range from 18% to 45%, with a tax-free threshold of R78,150 (for persons under 65).