An exploration of whether using a global employment company could mitigate the South African tax risks in relation to inbound expatriates in multinational companies
- Authors: Pavey, Janet Gail
- Date: 2018
- Subjects: Double taxation -- South Africa , Corporations, Foreign -- South Africa , Foreign workers -- Taxation -- South Africa , International business enterprises -- South Africa , Corporations -- Taxation -- South Africa , Value-added tax -- Law and legislation -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/61368 , vital:28019
- Description: The main objective of this research paper was to explore whether a multinational company could use a global employment company to employ its expatriates to mitigate, simplify or limit the tax risk for that foreign company when sending expatriates to South Africa. To investigate this topic, an interpretive research approach was used, a doctrinal research methodology was followed, and inductive reasoning was applied. The documentary data used in this research was publicly available. Firstly, the meaning of the term “expatriate” was explored, together with the types of employment arrangements commonly used to employ this type of employee. The South African tax consequences that an inbound expatriate may create for a multinational company were then analysed. These tax consequences were applied to the common types of employment arrangements to determine what the South African tax impact of these arrangements is likely to be and which entity within a multinational group is likely to be affected. It was investigated whether using a foreign global employment company provides any tax simplification or tax mitigation strategies for the multinational company for expatriates inbound to South Africa. The primary conclusions of this research were that it was found that using a global employment company may only provide a tax benefit in South Africa in very specific circumstances: (i) where the economic employer of the expatriate is the South African entity; (ii) where flexibility is required to easily move the expatriate to other jurisdictions; and (iii) where there are multiple home-host country combinations that the multinational group needs to consider when moving its expatriates. It would appear that using a global employment company as the employment arrangement for an inbound expatriate to South Africa may have a fairly limited application if its purpose is to mitigate tax risks. In effect, a global employment company is likely to provide tax benefits only where it acts as an international labour broker for the multinational company of which it is a part.
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- Authors: Pavey, Janet Gail
- Date: 2018
- Subjects: Double taxation -- South Africa , Corporations, Foreign -- South Africa , Foreign workers -- Taxation -- South Africa , International business enterprises -- South Africa , Corporations -- Taxation -- South Africa , Value-added tax -- Law and legislation -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/61368 , vital:28019
- Description: The main objective of this research paper was to explore whether a multinational company could use a global employment company to employ its expatriates to mitigate, simplify or limit the tax risk for that foreign company when sending expatriates to South Africa. To investigate this topic, an interpretive research approach was used, a doctrinal research methodology was followed, and inductive reasoning was applied. The documentary data used in this research was publicly available. Firstly, the meaning of the term “expatriate” was explored, together with the types of employment arrangements commonly used to employ this type of employee. The South African tax consequences that an inbound expatriate may create for a multinational company were then analysed. These tax consequences were applied to the common types of employment arrangements to determine what the South African tax impact of these arrangements is likely to be and which entity within a multinational group is likely to be affected. It was investigated whether using a foreign global employment company provides any tax simplification or tax mitigation strategies for the multinational company for expatriates inbound to South Africa. The primary conclusions of this research were that it was found that using a global employment company may only provide a tax benefit in South Africa in very specific circumstances: (i) where the economic employer of the expatriate is the South African entity; (ii) where flexibility is required to easily move the expatriate to other jurisdictions; and (iii) where there are multiple home-host country combinations that the multinational group needs to consider when moving its expatriates. It would appear that using a global employment company as the employment arrangement for an inbound expatriate to South Africa may have a fairly limited application if its purpose is to mitigate tax risks. In effect, a global employment company is likely to provide tax benefits only where it acts as an international labour broker for the multinational company of which it is a part.
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The influence of organisational culture on a high commitment work system and organisational commitment : the case of a Chinese multinational corporation in South Africa
- Authors: Mabuza, Linda Tengetile
- Date: 2015
- Subjects: Corporate culture -- South Africa , Corporate culture -- Cross-cultural studies , International business enterprises -- South Africa , Investments, Chinese -- South Africa , Organizational commitment -- South Africa , Performance -- Management , Host countries (Business) , Personnel management -- South Africa , South Africa -- Foreign economic relations -- China
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1205 , http://hdl.handle.net/10962/d1017768
- Description: Chinese presence in Africa has been rapidly increasing in the past few years and has been speculated to be mainly due to China seeking Africa’s political alliance and access to Africa’s natural resources and growing consumer markets. The growing presence of Chinese organisations in Africa, however, has not been without its challenges. In particular, Chinese multinational corporations (MNCs) in search of consumer markets in Africa have been cited as facing human resource (HR) challenges which may affect their organisational performance. In this regard, literature on human resource management has already established the important role of organisational culture, HR practices and organisational commitment in enabling organisations to achieve superior organisational performance. Given the fact that there is currently little research knowledge of Chinese presence in Africa at the organisational level, this research aimed to contribute empirical knowledge to the growing body of research in this area. Specifically, the main purpose of this research was to examine how the organisational culture of a Chinese MNC’s South African subsidiary has shaped the nature of its high commitment work system (HCWS) and to assess the consequences thereof on organisational commitment. In alignment with the phenomenological paradigm, the research applied a descriptive and explanatory case study methodology in order to generate rich, qualitative data which was required for in-depth descriptions and to uncover the underlying interactions of the researched phenomena at the subsidiary. The selected case for the research was, therefore, a Chinese MNC operating in the personal computer (PC) industry, which had expanded its operations to South Africa in order to reach Africa’s growing consumer markets. In particular, the South African subsidiary served as a PC sales and distribution organisation for the Chinese MNC. There were about 40 employees at the subsidiary who were all South African employees. Semi-structured, in-depth interviews were conducted with twelve employees from different job functions and across different job levels. Data collection was guided by the theoretical frameworks by Cameron and Freeman (1991) for organisational culture and Xiao and Bjorkman (2006) for the HCWS and organisational commitment. The data collected from interviews was then analysed through a qualitative, content analysis process. The findings of the research thus pointed to the market culture as the dominant organisational culture type at the South African subsidiary of the Chinese MNC; characteristics of the adhocracy and clan cultures were also discovered. The externally oriented market culture was found to be the most relevant for the high performance and market leadership aspirations of the subsidiary. The market culture also appears to be the most appropriate organisational culture that would enable the subsidiary to deal with the competitive nature of the PC industry. Furthermore, it was found that certain cultural values emphasised by the Confucian and Ubuntu value systems could have had a part to play in the formation of the subsidiary’s organisational culture. The market culture was also found to have had the greatest influence in shaping the primarily performance oriented HCWS practices. Of the investigated HR practices at the subsidiary, all were found to be consistent with HCWS practices, with the exception of ownership practices and the performance appraisal system. Finally, although there were generally high levels of organisational commitment reported at the subsidiary, other job and organisational context factors besides the HCWS practices were found to be the major contributors to those feelings of organisational commitment. By investigating the organisational culture, HCWS and organisational commitment of a Chinese MNC in South Africa, this research has added to the body of knowledge concerning the growing presence of Chinese organisations in Africa. Based on the empirical findings of this study, several recommendations have been made in an attempt to assist the Chinese MNC manage the organisational commitment of its South African employees towards superior organisational performance.
- Full Text:
- Authors: Mabuza, Linda Tengetile
- Date: 2015
- Subjects: Corporate culture -- South Africa , Corporate culture -- Cross-cultural studies , International business enterprises -- South Africa , Investments, Chinese -- South Africa , Organizational commitment -- South Africa , Performance -- Management , Host countries (Business) , Personnel management -- South Africa , South Africa -- Foreign economic relations -- China
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1205 , http://hdl.handle.net/10962/d1017768
- Description: Chinese presence in Africa has been rapidly increasing in the past few years and has been speculated to be mainly due to China seeking Africa’s political alliance and access to Africa’s natural resources and growing consumer markets. The growing presence of Chinese organisations in Africa, however, has not been without its challenges. In particular, Chinese multinational corporations (MNCs) in search of consumer markets in Africa have been cited as facing human resource (HR) challenges which may affect their organisational performance. In this regard, literature on human resource management has already established the important role of organisational culture, HR practices and organisational commitment in enabling organisations to achieve superior organisational performance. Given the fact that there is currently little research knowledge of Chinese presence in Africa at the organisational level, this research aimed to contribute empirical knowledge to the growing body of research in this area. Specifically, the main purpose of this research was to examine how the organisational culture of a Chinese MNC’s South African subsidiary has shaped the nature of its high commitment work system (HCWS) and to assess the consequences thereof on organisational commitment. In alignment with the phenomenological paradigm, the research applied a descriptive and explanatory case study methodology in order to generate rich, qualitative data which was required for in-depth descriptions and to uncover the underlying interactions of the researched phenomena at the subsidiary. The selected case for the research was, therefore, a Chinese MNC operating in the personal computer (PC) industry, which had expanded its operations to South Africa in order to reach Africa’s growing consumer markets. In particular, the South African subsidiary served as a PC sales and distribution organisation for the Chinese MNC. There were about 40 employees at the subsidiary who were all South African employees. Semi-structured, in-depth interviews were conducted with twelve employees from different job functions and across different job levels. Data collection was guided by the theoretical frameworks by Cameron and Freeman (1991) for organisational culture and Xiao and Bjorkman (2006) for the HCWS and organisational commitment. The data collected from interviews was then analysed through a qualitative, content analysis process. The findings of the research thus pointed to the market culture as the dominant organisational culture type at the South African subsidiary of the Chinese MNC; characteristics of the adhocracy and clan cultures were also discovered. The externally oriented market culture was found to be the most relevant for the high performance and market leadership aspirations of the subsidiary. The market culture also appears to be the most appropriate organisational culture that would enable the subsidiary to deal with the competitive nature of the PC industry. Furthermore, it was found that certain cultural values emphasised by the Confucian and Ubuntu value systems could have had a part to play in the formation of the subsidiary’s organisational culture. The market culture was also found to have had the greatest influence in shaping the primarily performance oriented HCWS practices. Of the investigated HR practices at the subsidiary, all were found to be consistent with HCWS practices, with the exception of ownership practices and the performance appraisal system. Finally, although there were generally high levels of organisational commitment reported at the subsidiary, other job and organisational context factors besides the HCWS practices were found to be the major contributors to those feelings of organisational commitment. By investigating the organisational culture, HCWS and organisational commitment of a Chinese MNC in South Africa, this research has added to the body of knowledge concerning the growing presence of Chinese organisations in Africa. Based on the empirical findings of this study, several recommendations have been made in an attempt to assist the Chinese MNC manage the organisational commitment of its South African employees towards superior organisational performance.
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Perceptions of organisational commitment within a selected Chinese organisation in South Africa: a case study approach
- Authors: Paterson, Steven James
- Date: 2014
- Subjects: Organizational commitment -- South Africa , Personnel management -- South Africa , Employee motivation -- South Africa , International business enterprises -- South Africa , China -- Foreign economic relations -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1201 , http://hdl.handle.net/10962/d1013094
- Description: Chinese organisations are benefiting from increasing support from the Chinese government to enter into Africa. It is believed that over 2 000 Chinese organisations are operational in Africa, contributing greatly to employment within the continent. Despite the importance of Chinese organisations and their operations in Africa, very little research has been done on individual and organisational issues in Chinese organisations operating in Africa, and more specifically the local employees' organisational commitment to such organisations. The organisational commitment of South African employees within Chinese organisations in South Africa is important as it promotes the success of Chinese business, which may promote further investment into the country, as well as the use of local human resources. The primary aim of this research was therefore to conduct a literature and empirical study into the levels of and factors influencing the organisational commitment of South African employees in a selected Chinese organisation in South Africa. For the purposes of this study, a single case study approach, located within the phenomenological research paradigm, was used. A large multinational Chinese organisation with operations in South Africa agreed to participate in this study. The research made use of a descriptive case study design. To give effect to the primary aim of the study, three research objectives were identified. Firstly, to identify and describe key factors influencing local employee commitment. Secondly, to identify and describe current commitment levels amongst local employees, and lastly, to propose recommendations to improve local employee commitment and its implications for the appropriate management of human resources within the Chinese organisation. Data were collected by means of in-depth, semi-structured interviews with 20 participating employees at four organisational branches across South Africa. Moreover, although the interview transcripts were the primary source of data, the collection process was enriched with the use of organisational and participant observations. The findings of this research revealed ten factors which are perceived to influence the commitment of South African employees within the organisation, namely: Open communication, Leadership, Supervisory support, Opportunities for training and development, Compensation, Job security, Promotional opportunities, Shared values, Recognition and Trust. Certain issues were raised by the participants during the in-depth interviews, most notably the limited opportunities for training, development and promotion, as well as issues regarding the perceived limited compensation received from the organisation. Despite these issues, the general findings relating to the levels of commitment in the organisation were positive for the organisation under study, with the majority of the participants being perceived to demonstrate high levels of affective, normative and continuance commitment.
- Full Text:
- Authors: Paterson, Steven James
- Date: 2014
- Subjects: Organizational commitment -- South Africa , Personnel management -- South Africa , Employee motivation -- South Africa , International business enterprises -- South Africa , China -- Foreign economic relations -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1201 , http://hdl.handle.net/10962/d1013094
- Description: Chinese organisations are benefiting from increasing support from the Chinese government to enter into Africa. It is believed that over 2 000 Chinese organisations are operational in Africa, contributing greatly to employment within the continent. Despite the importance of Chinese organisations and their operations in Africa, very little research has been done on individual and organisational issues in Chinese organisations operating in Africa, and more specifically the local employees' organisational commitment to such organisations. The organisational commitment of South African employees within Chinese organisations in South Africa is important as it promotes the success of Chinese business, which may promote further investment into the country, as well as the use of local human resources. The primary aim of this research was therefore to conduct a literature and empirical study into the levels of and factors influencing the organisational commitment of South African employees in a selected Chinese organisation in South Africa. For the purposes of this study, a single case study approach, located within the phenomenological research paradigm, was used. A large multinational Chinese organisation with operations in South Africa agreed to participate in this study. The research made use of a descriptive case study design. To give effect to the primary aim of the study, three research objectives were identified. Firstly, to identify and describe key factors influencing local employee commitment. Secondly, to identify and describe current commitment levels amongst local employees, and lastly, to propose recommendations to improve local employee commitment and its implications for the appropriate management of human resources within the Chinese organisation. Data were collected by means of in-depth, semi-structured interviews with 20 participating employees at four organisational branches across South Africa. Moreover, although the interview transcripts were the primary source of data, the collection process was enriched with the use of organisational and participant observations. The findings of this research revealed ten factors which are perceived to influence the commitment of South African employees within the organisation, namely: Open communication, Leadership, Supervisory support, Opportunities for training and development, Compensation, Job security, Promotional opportunities, Shared values, Recognition and Trust. Certain issues were raised by the participants during the in-depth interviews, most notably the limited opportunities for training, development and promotion, as well as issues regarding the perceived limited compensation received from the organisation. Despite these issues, the general findings relating to the levels of commitment in the organisation were positive for the organisation under study, with the majority of the participants being perceived to demonstrate high levels of affective, normative and continuance commitment.
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Trends and determinants of inward foreign direct investment to South Africa
- Authors: Rusike, Tatonga Gardner
- Date: 2008
- Subjects: International business enterprises -- South Africa , Investments, Foreign -- South Africa , Economic development -- South Africa , Macroeconomics -- South Africa , Foreign exchange rates -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:995 , http://hdl.handle.net/10962/d1002730 , International business enterprises -- South Africa , Investments, Foreign -- South Africa , Economic development -- South Africa , Macroeconomics -- South Africa , Foreign exchange rates -- South Africa
- Description: Foreign direct investment (FDI) is seen as a way to provide the needed capital inflow to stimulate growth in a domestic economy. FDI can also result in increased employment levels, managerial skills and increase in technology. In efforts to attract FDI, host countries have undertaken various policy incentives to attract foreign investors. This study analyses the trends and determinants of inward FDI to South Africa for the period 1975-2005. The study starts by reviewing FDI literature on its determinants and provides the macroeconomic background and FDI related policies undertaken in South Africa. The trend and sectoral analysis provides the actual nature of FDI flows to South Africa. An empirical model linking theoretical and empirical determinants of FDI is estimated using the Johansen cointegration and VECM framework. The study also augments the cointegration framework with impulse response and variance decomposition analyses to complement the long and short run determinants of FDI. Dummy variables are used in each of the estimated FDI models to take into account the possibility of structural breaks. Results show that relative to the size of the economy and to other developing countries, South Africa still receives low levels of inward FDI. Only are few years are exceptional i.e. 1997, 2001 and 2005. From the sectoral distribution, the financial sector is now the major recipient of FDI followed by the mining and manufacturing sectors. The emergence of the financial sector could suggest that FDI motives could have shifted from the natural resource seeking and market seeking to efficiency seeking FDI. The United Kingdom emerges as the major source of FDI to South Africa followed by United States of America and Germany. Empirical analysis indicated that openness, exchange rate and financial development are important long run determinants of FDI. Increased openness and financial development attract FDI while an increase (depreciation) in the exchange rate deters FDI to South Africa. Market size emerges as a short run determinant of FDI although it is declining in importance. Most of the impulse response analysis confirmed the VECM findings. Variance decomposition analysis showed that FDI itself, imports and exchange rate explain a significant amount of the forecast error variance. The influence of market size variable is small and declining over time.
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- Authors: Rusike, Tatonga Gardner
- Date: 2008
- Subjects: International business enterprises -- South Africa , Investments, Foreign -- South Africa , Economic development -- South Africa , Macroeconomics -- South Africa , Foreign exchange rates -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:995 , http://hdl.handle.net/10962/d1002730 , International business enterprises -- South Africa , Investments, Foreign -- South Africa , Economic development -- South Africa , Macroeconomics -- South Africa , Foreign exchange rates -- South Africa
- Description: Foreign direct investment (FDI) is seen as a way to provide the needed capital inflow to stimulate growth in a domestic economy. FDI can also result in increased employment levels, managerial skills and increase in technology. In efforts to attract FDI, host countries have undertaken various policy incentives to attract foreign investors. This study analyses the trends and determinants of inward FDI to South Africa for the period 1975-2005. The study starts by reviewing FDI literature on its determinants and provides the macroeconomic background and FDI related policies undertaken in South Africa. The trend and sectoral analysis provides the actual nature of FDI flows to South Africa. An empirical model linking theoretical and empirical determinants of FDI is estimated using the Johansen cointegration and VECM framework. The study also augments the cointegration framework with impulse response and variance decomposition analyses to complement the long and short run determinants of FDI. Dummy variables are used in each of the estimated FDI models to take into account the possibility of structural breaks. Results show that relative to the size of the economy and to other developing countries, South Africa still receives low levels of inward FDI. Only are few years are exceptional i.e. 1997, 2001 and 2005. From the sectoral distribution, the financial sector is now the major recipient of FDI followed by the mining and manufacturing sectors. The emergence of the financial sector could suggest that FDI motives could have shifted from the natural resource seeking and market seeking to efficiency seeking FDI. The United Kingdom emerges as the major source of FDI to South Africa followed by United States of America and Germany. Empirical analysis indicated that openness, exchange rate and financial development are important long run determinants of FDI. Increased openness and financial development attract FDI while an increase (depreciation) in the exchange rate deters FDI to South Africa. Market size emerges as a short run determinant of FDI although it is declining in importance. Most of the impulse response analysis confirmed the VECM findings. Variance decomposition analysis showed that FDI itself, imports and exchange rate explain a significant amount of the forecast error variance. The influence of market size variable is small and declining over time.
- Full Text:
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