DEFERRAL OF PAYE PAYMENTS (EMPLOYEES’ TAX)
- Payment of 35% of monthly PAYE liability to be deferred.
- Deferral applicable from 1 April (i.e. relief applicable to April PAYE payable in May) to 31 July 2020.
- PAYE amounts deferred to be payable to SARS over 6- month period 7 September 2020 to 5 February 2021.
SKILLS DEVELOPMENT LEVY (SDL) REPRIEVE
- 4- month payment “holiday” provided for SDL (payable at rate of 1% of salaries).
- 4-month period assumed to be same 4-month period applicable to employees’ tax deferment (April 2020 – July 2020).
DEFERRAL OF PROVISIONAL TAX PAYMENTS
- First provisional tax payments falling due between 1 April 2020 and 30 September 2020 will only be based on 15% (previously 50%) of estimated total tax liability.
- Second provisional tax payments falling due between 1 April 2020 to 31 March 2021, will be based on 65% (previously 100%) of estimated total tax liability.
- Full amount of deferred provisional tax must be paid at time of third provisional payment.
R750 TAX SUBSIDY – EXPANSION OF EMPLOYMENT TAX INCENTIVE (ETI)
- Monthly ETI claim amounting to R750 during period 1 April 2020 to 31 July 2020 for employees (earning less than R6, 500) from ages:
- 18 to 29 who are no longer eligible for the ETI as employer has claimed ETI in respect of those employees for 24 months; and
- 30 to 65 who are not eligible for the ETI due to their age.
EMPLOYMENT TAX INCENTIVE (ETI) ACCELERATION TO MONTHLY
- SARS to accelerate payment of ETI reimbursements from twice a year to monthly.
- Relief effective 1 April 2020 to 31 July 2020.
FAST-TRACKING VAT REFUNDS FOR SMALL VENDORS
- Smaller VAT vendors (typically turnover less than R 30 million) in a net refund position temporarily to be permitted to file VAT returns monthly instead of once every two months, thereby unlocking input tax refund faster and immediately helping with cash- flow.
- SARS currently working towards having systems in place to allow this in May 2020 for Category A vendors that would otherwise only file in June 2020.
CASE-BY-CASE APPLICATION TO SARS FOR WAIVING OF PENALTIES
- Larger businesses (with gross income greater than R100 million) able to prove incapability of making payment due to COVID-19 disaster, may apply directly to SARS to defer tax payments without incurring penalties.
- Similarly, businesses with gross income less than R100 million can apply for additional deferral of payments without incurring penalties.
DONATIONS TO SOLIDARITY FUND
- Taxpayers making donations able to claim up to an additional 10% as a deduction from their taxable income.
- Separate and additional tax deduction to be allowed for donations to solidarity fund. Therefore, taxpayers may potentially claim 20% tax deduction depending on who donations made to.
COVID-19 TEMPORARY EMPLOYEE/EMPLOYER RELIEF SCHEME, (C19 TERS), 2020
- C19 TERS to pay a portion of cost of affected employees salary during temporary closure of businesses’ operations.
- C19 TERS to remain in operation for a three-month period or until withdrawn by the Minister, whichever comes first.
- Salary benefit capped to maximum of R17,712.00 per month, per employee and employee to be paid in terms of the income replacement rate sliding scale, (38% – 60%) as provided for by UI Act.
BUSINESS GROWTH AND RESILIENCE FACILITY, (BGRF)
- BGRF available to SMMEs who locally manufacture or supply hygiene and medical products that are in demand to curb and manage spread of COVID-19 virus.
- BGRF to offer working capital, stock, bridging finance, order finance and equipment finance.
- Support based on funding needs of the actual business.
SMME RELIEF FINANCE FACILITY, (SMMERF)
- SMMERF to provide soft-loan funding for existing businesses in distress due to the COVID-19 pandemic.
- Online applications open from 2 April 2020 and assistance available for six months.