Covid Business Support: Tax Relief
On 29 March 2020 the Minister of Finance issued a media statement confirming the tax relief measure outlined by the President on 23 March 2020.
The Salient Points of the Media Statement
- A tax subsidy to employers of up to R500 per month for the next four months for those private sector employees earning below R6,500 under the Employment Tax Incentive, were introduced.
- The South African Revenue Service will accelerate the payment of employment tax incentive reimbursements from twice a year to monthly to get cash into the hands of compliant employers as soon as possible.
- Tax compliant businesses with a turnover of R50-million or less will be allowed to delay 20% of their employees' tax liabilities over the next four months and a portion of their provisional corporate income tax payments without penalties or interest.
It should be noted that the proposed amendments are deemed to have came into operation on 1 April 2020 and will therefore be applicable to tax periods ending after that date. The deferment of 20% of the employees' tax liabilities is therefore applicable from the April 2020 period, payable 7 May 2020 and not from the March 2020 period which is payable on 7 April 2020.
Should you require assistance or have any questions regarding the above please don't hesitate to contact us.
We will continue to provide information as soon as it becomes available. Please be on the look at for our emails under the following heading: UPDATE: Covid-19 BUSINESS SUPPORT
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