President Cyril Ramaphosa announced further Covid-19 tax relief measures to assist businesses in difficult financial times amid the Covid-19 pandemic national lockdown.
Additional Covid-19 tax relief measures include:
- the fast-tracking of VAT refunds (returns may be submitted monthly);
- a four-month skills development levy payment holiday;
- a three-month delay for the filing and first payment of carbon tax;
- Tax compliant Small, Medium and Micro Enterprises (SMMEs) with a turnover of up to R100 million, (previously R50 million) can now defer 35% (previously 20%) of their employees’ tax for April to July;
- The previous turnover threshold to qualify for tax deferrals is increased to R100 million (previously R50 million) a year;
- Companies with a turnover of above R100 million can apply for a deferral directly from SARS and this will be evaluated on a case-by-case basis;
- Taxpayers who donate to the Solidarity Fund, will be able to claim up to 10% as a deduction from their taxable income.
There has been no amendment to the repayment periods as stipulated previously and the deferred amounts are repayable to SARS over a six-month period commencing on 1 August, effectively meaning the first repayment of PAYE should be made by 7 September.
SAIBA: BA (SA) & SAIT: GTP