The New Critical Skills List - Corporate General Manager is in!

The New Critical Skills List – Corporate General Manager Is In!

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One such occupations on the Critical Skills List is that of Corporate General Manager (CGM). This has been defined on the Critical Skills List as an individual who plans, organizes, directs, controls, and reviews the day-to-day operations and major functions of a commercial, industrial, or other organization (excluding government or local government) through departmental managers and subordinate executives.

This occupation was included on the new critical skills based on the high number of comments requesting inclusion, along with subsequent requests for inclusion by both the Department of Trade, Industry and Competition and the Presidency’s Operation Vulindlela, which provided substantiating evidence that the occupation is indeed in shortage.

The technical report issues by the Department of Home Affairs, read with the new Critical Skills List provides under Annexure 1 different names or specialisations included for the occupations listed on the Critical Skills List. However different titles are not provided for the occupation of Corporate General Manager thus applicants are limited to using the above specified occupation title when submitting their applications.

The new Critical Skills List is highly focused on levels of education that must be met by the applicant to qualify for a Critical Skills Work Visa. Applicants applying under the occupation of Corporate General Manager must submit proof with their application that their qualifications meet the new minimum requirement of NQF level 8, as confirmed and evaluated by SAQA.

The size of the organization is a significant distinction to establish in the case of Corporate General Manager (CGM) and Director. The view laid out in the critical skills technical report is that Critical Skills Work Visas for these occupations could be exploited if the size of the organization is not provided (i.e., individuals who are self-employed, a sole employee and designated as a manger will be able to obtain a CSV). As a result, only those looking for a position in a medium or big company will be considered for a CSV. The size of a business can be evaluated by looking at both the total number of full-time equivalent paid employees and total annual turnover, according to the Department of Small Business Development (2019). As a result, for a person to apply for a Critical Skills Work Visa as a Corporate General Manager the above thresholds must be met.

Although Corporate General Manager is on the new Critical Skills list it has greater limitations that will need to be adhered to such as the applicant’s level of education, the size of the enterprise the applicant will work for and the annual turnover of said enterprise.

We caution applicants and employers in conjunction with your preferred provider, when preparing new applications, to take a careful and considered approach, proactively anticipating challenges during the adjudication process in terms of the new criteria as set out. New applications will be widely open to interpretation, and it is our role when preparing your application, to make it clear to the adjudicator that the applicant indeed qualifies for a visa under the category of Corporate General Manager.

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What You Need To Know About The Critical Skills Technical Report

What You Need To Know About The Critical Skills Technical Report

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This resulted in the production of a technical report that included a methodological description of the occupations on the critical skills list, the way in which these professions where chosen and further detail on the processes and requirements that need to be adhered to by foreigners when applying for a critical skills work visa.

Although the majority of this report is devoted to responding to requests for inclusion or deletion from the list, the comments covered a wide range of issues. Part 2 describes the considerations for inclusion and exclusion criteria, as well as how these criteria were applied in conjunction with requests obtained through the public comment process. Further comments on methodology, qualifications, industry body, policy legislation, regulation, and Organising Framework for Occupations (OFO) were also received. Much of this report is devoted to the process of finalizing the list and presenting it in its completed state. Various stakeholders validated this list in Part 3 through the NEDLAC process, which sharpened the “penultimate list” (for confirmation by the DHA Minister) in Part 4.

Whilst the methods to which the critical skills list came about are noteworthy, there are particular points of interest in the technical report that make an impact on the process of applying for a critical skills work visa.

Items that Impact the Process of Applying for a Critical Skills Work Visa

Alternative Titles

Table 6 shows a list of all alternate names for the vocations included in the final CSL. While the Organising Framework for Occupations (OFO) contains most of these specialisations and alternate titles, there are a few titles indicated that are not in the OFO. As a result, the researchers have prepared the following list of all specialisations and alternate titles associated with the final CSL jobs.

Lecturers Included

Annexure 2 of this technical report outlines the fields of study for lecturers as accounting and informatics, agricultural, environmental, and natural sciences, arts-design and social sciences, business studies, commerce, education, management sciences, engineering and the built environments, food service management, health sciences, humanities, information and communications technology, law, medicine and health sciences, science, physics, public management and administration, and theology.

Minimum NQF Level

The view brought forth in the report is that if a position is to be filled via a critical skills work visa, the NQF requirement should tip the scales in favour of South Africans; in other words, non-South Africans should have greater qualification expectations than South Africans.

In keeping with this principle, the researchers have set qualifications criteria in the CSL that are slightly higher than what South Africans are required to practice. Their hope is that this will attract skilled persons from outside while ensuring that South Africans with such skills are not disadvantaged.

With such great importance being placed on these NQF levels it is imperative that foreigners prove that their qualifications fall withing these requirements when submitting their applications.

Professional Bodies

Stakeholders and comments to the public feedback period emphasized two main points in addition to the specific proposed modifications. These are things that the DHA should think about – Clarifying in the report that the professional bodies named are not necessarily the only professional bodies to whom foreign nationals can apply for professional membership; or simply removing references to specific professional bodies from the CSL because their inclusion could be anti-competitive. In this case, the DHA could check the whole list of professional bodies registered by the South African Qualifications Authority against its CSL rules on professional bodies (SAQA).

Currently, the regulation governing the publication of the CSL requires that occupations be covered by a SAQA-registered professional body (statutory or non-statutory). Considering this regulation, the researchers took the following steps to ensure that no SAQA-registered professional body was left out of the study:

  • If a person is required by law to be licensed to practice in a certain occupation, the CSL will show the SAQA-registered professional organisation or bodies that offer that licensure.
  • If a person is not obliged by law to be licensed to practice in a particular occupation, the CSL will show that there are no professional organisations associated with that occupation (of which there may be many). In this case, the SAQA website has a database of all SAQA-registered professional bodies relevant to the critical skills list.

Corporate General Manager

The technical report has made significant distinctions in the case of Corporate General Manager (CGM) and Director. The opinion reported is that these jobs could be exploited if the size of the organization is not provided (i.e., individuals who are self-employed, a sole employee and designated as a manger will be able to obtain a critical skills work visa). As a result, only those offered employment in a medium or large enterprise will be considered for a CSV. The size of a business can be evaluated by looking at both the total number of full-time equivalent paid employees and total annual turnover, according to the Department of Small Business Development (2019). As a result, in order to apply for a CSV as a CGM or Director, both of the criteria listed must be satisfied.

How to Approach your Critical Skills Visa application

Foreign applicants should make use of the guidelines set out in the technical report when compiling their applications for a critical skills work visa as the report is concise in its description of what the Department of Home Affairs will be considering when adjudicating such applications.

We are recommending a careful and considered approach, proactively anticipating challenges during the adjudication process in terms of the new criteria as set out.

We caution applicants and employers in conjunction with your preferred provider, when preparation new applications, to assess and determine best suited category to apply under and the documentation included to demonstrate the candidate qualifies in the category selected. New applications will be widely open to interpretation, and it is our role when preparing your application, to make it clear to the adjudicator that the applicant indeed qualifies for a visa under the new Critical Skills list.

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Why emigrating to the Netherlands is attractive to South Africans

Why Emigrating To The Netherlands Is Attractive To South Africans

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Not only is the Netherlands attractive in terms of their work / life balance, but the Dutch government offers enticing tax incentives for highly skilled migrants, especially in the financial, engineering and information technology (“IT”) fields.

According to Rob Ridout, from Job Search International, skilled South African professionals are in high demand.

“Highly skilled South African professionals are seen as assets to foreign employers. South Africans should not be hesitant to apply for international vacancies, especially in the Netherlands,” explains Ridout.

Why Netherlands?

Covid-19 and its far-reaching effects has not deterred the economic growth of the Netherlands. According to the Central Bureau of Statistics (CBS), the economy growth rose to 4.8% for 2021. With the economy growing at such an exponential rate during a pandemic, the Netherlands has now been facing a different type of dilemma, job vacancies are now outnumbering the number of unemployed people. This means that there are roughly 123 vacancies to 100 unemployed people according to the CBS.

“One of the major success stories, that shows that the Netherlands is the global hub for tech, is that Dutch company ASML recently sold their advanced chipmaking tool to Intel for more than $340 million with even more orders being placed by other companies. This in turn will create many more job opportunities for highly skilled migrants in the financial, engineering and IT arenas”, says Rob Ridout.

It is not just the growing pool of vacancies that’s attractive for South Africans. The Dutch work / life balance is another contributing factor to why the Netherlands is seen as an emerging hub for skilled migrants. The Dutch put a lot of emphasis on “family / leisure time” and working hours are fewer than in most European countries. Most Dutch professionals work on average 35 hours per week where a few of those days can be used for remote working.

The Dutch government has invested a lot in providing enticing attractions with regards to research and development (R&D) tax incentives that is offered and boasts a strong digital infrastructure that is renowned for their openness to multidisciplinary thinking. The Netherlands is seen as the gateway to the European R & D arena with 10 unique campuses or “incubators” that each specializes in a host of applications that include agrifood, artificial intelligence and quantum technology.

Tax benefits of working in the Netherlands

There is also a 30% tax ruling that is another attractive incentive for expats. This ruling is aimed at highly skilled migrants that have expertise in areas that are not easily found in the Netherlands.

What the 30% ruling entails is that an employer may compensate you for “extraterritorial costs” equivalent to 30% of gross salary untaxed. But there are certain specifications that highly skilled migrants need to meet before they can qualify for this incentive.

According to the Dutch Tax Administration, employees must meet the following conditions –

  • The employee is in paid employment.
  • The employee has specific expertise that is not or hardly found in the Dutch labour market.
  • The employee was recruited outside of the Netherlands.
  • The employee is in possession of a valid decision from the government.

Exiting South Africa correctly

Once the highly skilled South African has found employment in the Netherlands, important steps need to be taken to ensure that they remain tax compliant with SARS.

“The first important question that needs to be asked is whether one is going to emigrate with the intention to permanently stay in the Netherlands, or if that person will come back to reside in South Africa. And the second vital factor is whether the person will be an employee or independent contractor. These are criteria that will determine what exemption or route you can take in terms of tax residency and foreign income”, says Victoria Lancefield, General Manager for Tax Residency & Financial Emigration at Tax Consulting SA.

All South African tax residents need to submit tax returns to SARS on an annual basis to declare their South African or foreign income, if foreign income was made then the taxpayer needs to claim an exemption on foreign earnings.

Foreign earnings will be taxed on the surplus of R1.25 million at the marginal income tax rate which could be as high as 45%. Even if the tax resident qualifies for an exemption, a tax return needs to be submitted.

Tax residents need to understand that even if they cease their South African citizenship, their tax residency will remain because citizenship falls under the jurisdiction of the Department of Home Affairs and tax residency falls under the jurisdiction of SARS, the two do not align.

What are your options?

Certain processes are needed to formally cease tax residency so that SARS does not come knocking on your door.

Victoria Lancefield states that, “there are two options available to South Africans thinking about emigrating. They can either undergo the financial emigration process if they are emigrating with the intention of not coming back to reside in South Africa, or they can apply the Double Tax Agreement (DTA) between two countries. The DTA route is undertaken when the professional has the intention of coming back to reside in South Africa in the future”.

It can be an arduous process to start the financial emigration or DTA process and that is why it is important for one to consult a professional and experienced tax practitioners and tax attorneys to help them alleviate the tax burden while they get ready to move overseas to further their careers.

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10 Things You Need To Know About The New CSS List

10 Things You Need To Know About The New Critical Skills List

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Marisa Jacobs
Marisa Jacobs
Director

1. Corporate General Manager is in!

The list includes both Corporate General Manager and Director as occupations in high demand. This comes as a huge relief after the occupation was left of the draft list causing panic for those currently holding a visa in this category as well as businesses who need these skills to operate optimally.  There have been new parameters placed hereon which include that it must be for those who have an offer of employment from a medium or large enterprise and that you must have a minimum NQF qualification of level 8.

2. Qualifications Minimum requirement

The new list requires a minimum NQF level qualification for each occupation ranging from level 3 to level 10 and mostly NQF level 8 and 9 required. The Act requires that a critical skills visa applicant in this category must have the necessary “qualification and/or experience” related to the position. The revised list now clearly defines that a qualification is required for each occupation on the list.

3. Engineering occupations remain prevalent

The list continues to include numerous Engineering occupations including Electrician Engineer, Chemical Engineer and Mining Engineer which were initially left of the draft list. The Xpatweb annual critical skills survey in 2021 confirmed that Engineering skills are of the most sought-after skills in South Africa and employers are looking for highly qualified engineers with many years experience. As we continue to see South African engineers recruited globally including places like the Netherland, we foresee arise in the shortage of experienced engineers in South Africa.

4. PR under the old Critical Skills list occupations

Those who hold critical skills visas under the old list (2014) and whose skills did not make it onto the new list, will still be allowed to apply for Permanent Residency if the qualify in line with the requirements of the new critical skills list. This is a concern for many as their critical skills visa might not be renewable if not included on the new list.

5. Firm Offer of Employment a must

New guidelines confirm that all applicants in the category Critical Skills Visa must have an offer of employment in hand at the time of making the application. Previously an applicant was allowed to apply without such an offer and was issued a one-year visa to allow them to secure employment before applying for a full 5-year visa. This is no longer allowed.

6. Foreign Language Speakers included

Call Centres raised concerns at the original exclusion of foreign language speaker from the draft list published in March 2021 as this would spell disaster for their need to serve European, Middle East and Asian markets. The new list now includes a revised occupation of outbound and inbound contact centre consultants respectively with specialist language skills listing the same listed as previously including German, Swiss German, Flemish, Greek, Swedish, Danish, Italian, Dutch, Spanish, Mandarin and French. Languages that did not make the list despite submission to include same are Portuguese, Arabic, Russian and Brazilian.

7. Teachers and Lecturers Back on

The quota list pre 2014 included teachers and was unpopularly removed from the list in 2014. All teachers had to go through the extensive General Work Visa process to gain a work visa. The new list sees STEM teachers for Grade 8 – 12 included with a NQF level 7 requirement as well as University Lecturers with NQF level 9 and 10.

8. Let’s Talk Post Qualification Experience

Applications for Permanent Residency under critical skills will require the inclusion of proof of post qualification experience that have been vetted by MIE or similar organisations. This is an additional step that was previously satisfied with a detailed CV and reference letters from past employers.

9. Withdrawal of Waiver for Critical Skills graduates in SA

Those who studied in a Critical Skills area were in the past, under Ministerial waiver, granted exemption from certain requirements such as past qualification experience and registration with a professional body. These exemptions have now been withdrawn and all applicants must comply with the requirements of the Act.

10. Teething Pains Expected

As with all law changes, we expect to see some initial teething problems and especially with adjudicating officials placed at Embassies all around the world, getting everyone on the same page in terms of the requirements to qualify for a visa under the revised list will have some issues in the coming months. Reach out to your service provider to guide you on how to navigate the new requirements for a first-time correct application and build in some timeline delays to ensure you are not caught off guard.

Ultimately, it is crucial for all South Africans to understand what skills our nation needs for our economic development and how we as South Africans can contribute productively, since our Critical Skills List is not just intended for Foreign Nationals but can also serve as a guide for Matriculants in their professional pathways to also plug the gap in line with skills shortage in the country.

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The Long-Awaited Critical Skills List Finally Gazetted

The Long-Awaited Critical Skills List Finally Gazetted

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Foreign Nationals may now establish whether their profession is in demand, scarce and/or critical in South Africa and may be eligible to commence a career path in the country provided that their intended occupation is in line with what is deemed as a critical skill.

So, what’s changed, and what does it mean for my pending application?

Foreign nationals now have access to previously unattainable opportunities thanks to the new Critical Skills List. If you currently hold a Critical Skills Work Visa and your skill is no longer listed, you may be unable to renew your visa. Despite the removal of certain important categories from the List, the following noticeable occupations have been added to South Africa’s Critical Skills List:

  • Director (Enterprise /Organisation) Chief Executive Officer, Managing Director- NQF 9
  • Corporate General Manager (medium enterprises or larger) (Master of Business Administration NQF 8
  • Programme or Project Manager (Master’s Degree (NQF 9)
  • Quality Systems Manager (Master’s Degree (NQF 9) Quality Control Manager Quality Assurance Systems Auditor
  • Data Scientist Master’s Degree (NQF 9)

With the release of the new Critical Skills List, applicants who intend to apply for permanent residence in categories that are no longer on the list, may no longer be eligible. These visa holders must now reconsider an alternate visa category as well as their aspirations for permanent residence.

Ultimately, it is crucial for all South Africans to understand what skills our nation needs for our economic development and how we as South Africans can contribute productively, since our Critical Skills List is not just intended for Foreign Nationals but can also serve as a guide for Matriculants in their professional pathways to also plug the gap in line with skills shortage in the country.

It is also worth noting that the new categories and qualifying components may make the application procedure more onerous. Throughout your immigration journey, our immigration specialists can help you navigate these challenges and guide you through out the process.

ACCESS THE NEW CRITICAL SKILLS LIST NOW
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