Izak Smit, CEO of the Professional Provident Society (PPS), says a significant number of skilled South Africans are leaving the country in search of more environmentally friendly meadows.
Talk to Moneyweb radioSmit said there are many reasons to retire and could be positive, including more career opportunities. But he also said there are several drivers, including the country’s high levels of taxation, education, personal safety and health.
“Traditional” expatriates remain the most popular destinations for these immigrant South Africans, with the United Kingdom, Canada, Australia and New Zealand usually at the top of the list, Mr. Smit said.
But in recent years, he said, this has also shifted to population destinations in the Americas and Far East Asia. Not all of these South Africans work for international companies, Smit said.
He said that while it is becoming more and more common for someone to be based in another country, he still works in South African business.
Mr Smit said immigration decisions are more detailed than simply moving the country. He said that they often move in certain cities.
Taxation is a push factor
Former economics professor Dr. Brian Benfield says South Africa boasts one of the highest personal income taxes in the world, apart from one of the countries with the highest corporate tax rates.
In the analysis of Flea Market Foundation, Benfield said South Africa’s maximum marginal tax rate of 45% is the second highest in Africa after Côte d’Ivoire.
“In all other African countries, personal tax rates are low. We are on average two-thirds of us, and some are much lower than us in Africa. Are you going to compete? Remember that every time a South African employee spends his hard-earned after-tax income, he gets an additional 15% VAT.
South Africa’s jurisdiction is less attractive than ever, as Benfield has to pay twice for the same important services such as security, police, school education, medical care, and a stable water and electricity supply. Said.
“This lack of clear appeal as a place of residence, employment and investment becomes even less attractive due to crime and the constant threat of further state confiscation of assets without compensation. , Already paid for with a decrease in after-tax revenue. “
South Africa is also one of Africa’s highest corporate tax rates at 42.4% (28% + 20% dividends), according to Benfield.
“What would you like if a neighbor like Botswana collects only 20% and Mauritius collects only 15%? There are at least seven countries in the world with zero corporate tax. How can I with them? Can you compete?
“There are 15 other countries with a total corporate tax rate of less than 15%. More corporate tax rates are less than 30%. The average global corporate tax rate is less than 24%.”
James Formby, CEO of Rand Merchant Bank, previously warned that the post-blockade economy could be set back by a brain drain of skills to leave the country.
In a February interview, Formby said the country has lost qualified and experienced people in their 30s and 40s to overseas positions.
Data from Boston Consulting Group Shows that pandemics change most people’s views of work, and as a result, countries that have managed pandemics well through “flattening trends” are becoming popular destinations for immigrants.
The preferred immigrant countries are:
- new Zealand.
“Very positive, 57% of respondents said they were willing to work remotely for a company that doesn’t physically exist in their home country,” the group said.
Skilled people are leaving South Africa – here is where they go
Source link Skilled people are leaving South Africa – here is where they go