Wealth tax speculation could contribute to further emigration of the rich people of South Africa

 

Dominica's Investment Citizenship Program is one such option. Founded in 1993, for the last four consecutive years the program has been ranked as the world's best second citizenship offer through an independent study. Applicants should either invest in a government fund or buy into selected property options to qualify for citizenship. Citizenship is granted only once a multi-level vetting process has been passed. The benefits include visa free or visa-free travel to more than 140 countries and territories, the right to live, work and study in the nation, and the capacity to give citizenship to future generations. doha property finder

The introduction of a wealth tax has become an increasingly popular solution to address this, as many countries try to recover from the pandemic's economic impact. Although some experts concluded that a wealth tax could be a short-term instrument to raise revenue, many others also highlighted the concerns about taxation. A recent study by the World Inequality Lab shows that the tax could generate up to 160 billion rands ($10.7 billions). South Africa has become the latest country to introduced a wealth tax. Likewise, experts at Witwatersrand University in Johannesburg suggested establishing a progressive wealth tax on those who earn more than Rand 3.6 million, accounting for 354,000 high-ranking employees in the country. Although there are no plans to impose the levy, the nation has advanced its high-profit taxpayer division.

The segment was announced in February's Budget Speech to address individuals who did not declare their entire revenue as a result of "complex financial agreements." The South African Revenue Service (SARS) has already started identifying wealthy citizens, many of whom will be given their first letter this month. Extensive studies have shown that the rich population of South Africa continues to decline, with approximately 1,900 millionaires leaving from the most recent figure in 2020. According to the Africa report from New World Wealth, over the last ten years a total of 4,200 high net worth persons have left the country. This number will likely increase with the possibility of higher taxes for the rich.

"Applying further draconian tax legislation to manufacturing companies is contrary to the creation of an all-embracing economic development plan. This proposed move of SARS will create further government mistrust, leading more qualified professionals to explore other countries offering a fair and welcoming environment "Micha Emmett, CEO of CS Global Partners and double-skilled lawyer with decades of investment migration experience, states. "Investors look at countries with better economic opportunities to protect their wealth within a politically and economically stable democracy."

The Caribbean has become an ideal place for South Africans who want to stay without the drawbacks of their home country in a similar setting. The region is the pioneer of the Citizenship by Investment Programme – an initiative that encourages foreign investors to contribute in return for citizenship and the associated benefits to a nation's economy.

Not only does the nation have strong governance that facilitates economic opportunities in an environment, it is also one of the few countries in the world to successfully manage the outbreak of coronavirus. The vaccination program of Dominica is now in full swing, demonstrating that its government is proactive and committed to its citizens' prosperity.