Covid Business Support: The President's Address
During the President's address on 23 March 2020 various Covid-19 Economic Support and Relief Measures were introduced.
- The president said the state was working on a special dispensation for companies in distress because of the coronavirus. Under this proposal employees could receive wages via a temporary employee relief scheme to let companies pay employees directly. He did not provide further information.
- The state will consider utilising the reserves of the Unemployment Insurance Fund to extend support to workers in small and medium-sized enterprises and vulnerable firms faced with loss of income. Details will be made available in coming days.
- The state will provide a tax subsidy of up to R500 a month for four months for private sector workers earning less than R6,500 a month. He said this would help up to 4 million workers.
- The president said tax-compliant businesses with a turnover of less than R50-million would be allowed to delay 20% of their PAYE liabilities over the next four months, and a portion of their provisional corporate income tax payments over 6 months. This is expected to assist over 75,000 enterprises.
- The state is exploring the temporary reduction of contributions to the UIF and the Skills Development Fund.
- Commercial banks have been exempted from provisions of the Competition Act to enable them to develop common approaches to debt relief and other necessary measures, said Ramaphosa.
- The Industrial Development Corporation has put a package of R3-billion together for industrial funding for vulnerable firms and will seek to fast track financing for companies critical to efforts to fight the virus.
- The Department of Tourism has made R200-million available to assist small and medium-sized enterprises.
- The Department of Small Business Development has made R500-million available immediately to assist small and medium-sized enterprises.
What We Don't Know
The detail of the above economic relief measures has not yet been communicated. Further clarification relating to support will be provided in due course.
We will share this information as soon as it become available and continue to provide guidance and support relating to these matters.
What We Do Know
The Department of Labour advised that effected employees will be able to claim UIF. Please find further information and a process guide Easy Aid for Corona Benefits issued by the Department of Labour. Please read carefully.
Please also find attached the official forms to be completed in support of the application.
- UI2.1 (UI application form)
- UI19 & UI2.7 (to be completed by the Employer)
- UI2.8 (bank details form to be completed by the Bank)
- Self quarantine employee letter
- Self quarantine employer letter
The Department of Small Business Development released a statement pledging assistance to eligible SMME's effected by the Covid-19 State of Disaster. Please find the statement issued. SMME's requiring assistance are required to register on www.smmesa.gov.za.
Should you require assistance or have any questions regarding the above please don't hesitate to contact us.
Keep Calm. Keep Focused. Stay Safe!