PBA4801
ASSIGNMENT 1 2025
UNIQUE NO.
DUE DATE: 2025
, PBA4801 Assignment 1 2025
1: The Minister’s Position on Taxation and Fairness
The Minister of Home Affairs, Leon Schreiber, has stated that the introduction of a
remote-working visa in South Africa has been delayed due to tax-related issues that
need to be sorted out. While this might seem like just another bureaucratic hurdle, it
actually raises an important discussion about fairness in taxation.
When we talk about tax fairness, we usually consider two key principles: equity
(treating taxpayers in a way that is fair) and efficiency (ensuring tax rules help the
economy rather than slow it down). In this case, the government originally planned to
allow remote workers from other countries to stay in South Africa for up to six months a
year without paying local taxes—but only if they earned R1 million or more annually.
This approach raises some fairness concerns:
1. Equity Concerns: If wealthy foreign professionals can work in South Africa
without paying taxes, while local workers must pay income tax, this could be
seen as unfair. It creates an imbalance where locals carry more of the tax
burden, while high-earning foreigners get a free pass.
2. Efficiency Concerns: The goal of this visa is to attract skilled professionals who
will spend money in South Africa, boosting the economy. However, taxation
issues can slow down the process and make the country less attractive
compared to other destinations that offer smoother visa and tax arrangements. If
the government takes too long to resolve these tax concerns, South Africa may
miss out on benefiting from digital nomads who might choose other countries
instead.
3. Potential Solutions: A possible way to ensure fairness is to have a system
where remote workers contribute to tax in some way—perhaps through a
ASSIGNMENT 1 2025
UNIQUE NO.
DUE DATE: 2025
, PBA4801 Assignment 1 2025
1: The Minister’s Position on Taxation and Fairness
The Minister of Home Affairs, Leon Schreiber, has stated that the introduction of a
remote-working visa in South Africa has been delayed due to tax-related issues that
need to be sorted out. While this might seem like just another bureaucratic hurdle, it
actually raises an important discussion about fairness in taxation.
When we talk about tax fairness, we usually consider two key principles: equity
(treating taxpayers in a way that is fair) and efficiency (ensuring tax rules help the
economy rather than slow it down). In this case, the government originally planned to
allow remote workers from other countries to stay in South Africa for up to six months a
year without paying local taxes—but only if they earned R1 million or more annually.
This approach raises some fairness concerns:
1. Equity Concerns: If wealthy foreign professionals can work in South Africa
without paying taxes, while local workers must pay income tax, this could be
seen as unfair. It creates an imbalance where locals carry more of the tax
burden, while high-earning foreigners get a free pass.
2. Efficiency Concerns: The goal of this visa is to attract skilled professionals who
will spend money in South Africa, boosting the economy. However, taxation
issues can slow down the process and make the country less attractive
compared to other destinations that offer smoother visa and tax arrangements. If
the government takes too long to resolve these tax concerns, South Africa may
miss out on benefiting from digital nomads who might choose other countries
instead.
3. Potential Solutions: A possible way to ensure fairness is to have a system
where remote workers contribute to tax in some way—perhaps through a
