South Africa’s Tax Authorities Need to Keep Digital Nomad-induced Revenue Dilemmas in Check

In February 2022, when President Cyril Ramaphosa first announced that his administration was looking into creating a remote working visa, the idea was that making it easier for so-called digital nomads to temporarily relocate to South Africa would boost economic growth. Other countries wanting to capitalise on the Covid-induced rise in remote workers had already explored this option after the pandemic dealt a blow to tourism worldwide. Two years later, in February 2024, South Africa’s department of home affairs published draft amendments to the country’s immigration regulations finally introducing the remote working visa.  But the years since the pandemic have shown that — while creating new opportunities for the tourism industry — the rise of digital nomads is a double-edged sword, having the effect of pricing locals out of their home economies.

MAIL & GUARDIAN