The Ministry of Home Affairs this week gazetted proposed regulations in the Immigration Act that will impact on the financial future of foreigners working in SA. The sweeping changes proposed in the regulations will modernise immigration to SA.
It is proposed that a Judicial Assistance and a Training Fund be established where fees, levies and fines in terms of the Immigration Act are to be paid. According to Lino de Ponte, assistant manager at Deloitte & Touche Taxation Services` Immigration Department, one of the most controversial regulations is that 2% of a foreigner`s taxable remuneration will have to be paid quarterly and in advance to the Department of Home Affairs.
"At this stage, the regulations are not clear whether this amount will be a cost to the company or a cost for the individual`s account", and he adds, "the Department has set specific requirements to be met for a waiver or reduction of the 2% payment."
De Ponte says set guidelines for foreigners who intend establishing businesses in SA have now been established. "The law now requires that a foreigner will have to prove that he/she meets at least two of seven criteria to obtain a business permit for a new business venture", he explains.
The criteria on which adjudications will be made include an investment of at least R2.5 million, a business track record, geographical spread of economic activity, employment of five South Africans, export potential, transfer of technology or proof that the business is in one of the approved industries.
De Ponte adds that work permits for individuals will now require active participation by the employer. He says that it is essentially the employer`s responsibility to ensure that a foreigner holds a work permit. A new class of work permit has also been created for exceptionally skilled foreigners. Individuals can however still obtain work permits in a number of other classes.
According to De Ponte, another controversial proposal is that banking institutions, including micro financiers, as well as estate agents, insurance brokers, private hospitals, clinics and employment agencies will now have the duty to ascertain the status or citizenship of the persons with whom they enter into commercial transactions. "They will be under obligation to report illegal foreigners to the Department of Home Affairs", he adds.
According to the Act, the Department of Home Affairs intends establishing liaison officers in foreign countries from which large numbers of illegal foreigners originate where they will conduct programmes to deter illegal immigration to SA.
De Ponte says it looks like the Department of Home Affairs` policing functions have been beefed up. "Immigration officers may now enter work places without the need of warrants, and inspect records and make copies of employment contracts and other relevant records. Anyone failing to comply with one of the duties or obligations, as set out in the act, will be liable to a fine or a jail sentence not exceeding 18 months."
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