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.

We will continue to keep you updated with the latest information.  Alternatively, you can also visit the SARS website for more details or contact us.

Author:

Liza Moorcroft

SAIBA: BA (SA) & SAIT: GTP

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