Data from various sources suggests that around 23 000 South African (SA) tax residents emigrate each year in search of greener pastures. Individuals who cease to be tax residents currently pay an exit tax on their worldwide assets, with certain exclusions. At present, immovable properties and retirement funds that remain invested in South Africa are excluded from the exit tax net.
CEO of medical scheme, Profmed, Craig Comrie lauded the Minister of Finance’s focus on funding and rolling out of the COVID-19 vaccine but remains wary of how this budget is allocated so that every cent is spent on vaccine procurement and distribution.
With the funding and rollout of Covid-19 vaccinations acting as a centre-piece of the 2021 Budget Review, CEO of AfroCentric, South Africa’s largest diversified healthcare group, Ahmed Banderker, reacted positively to this year’s tabled National Budget, presented by Minister of Finance Tito Mboweni to Parliament yesterday.
Leading up the 2021 Budget speech South Africans could be forgiven for not being too optimistic about the prospects, especially when considering the Medium-Term Budget Policy Statement shared in October 2020. That concern was arguably not fully justified as the finance minister announced a budget that addressed some major concerns and a path to improvements on the debt to GDP ratio and the budget shortfall.
Finance Minister Tito Mboweni’s budget has been received very positively, as demonstrated by the reaction from markets. SA Inc companies have rallied, the rand initially strengthened, and even the bond market is acting positively. However, while there are notes of hope, this budget also demonstrates a number of key risks, overly optimistic assumptions and potential weaknesses, pointing to an extremely challenging path ahead for the country.
Visit the official COVID-19 government website to stay informed: sacoronavirus.co.za