Government measures in key jurisdictions 3rd edition final - Flipbook - Page 115
SouthAfrica
•
Company
law matters
Have any measures
been put in place to
accommodate social
distancing (such as
remote general
meetings)?
•
Fast-tracking of VAT refunds for smaller VAT vendors that are in a net refund position by permitting
the filing of VAT returns monthly instead of every two months without the need to apply to the
revenue authority to do so.
•
Extension of certain prescribed time periods under tax Acts in which the lockdown period will be
regarded as days that have no legal effect and will not be counted for purposes of the calculation of
certain time periods.
•
Deferral for excise taxes on alcoholic beverages and tobacco products for a period of 4 months with
effect from 01 May 2020.
•
Tax-deductible limit for donations, currently 10% of taxable income, is increased to 20% in respect of
donations to the Solidarity Response Fund during the 2020/21 tax year.
•
Certain corporate tax measures that were going to be introduced in terms of which the deductibility of
interest expenses, as well as the utilisation of assessed losses, would have been limited will be
postponed to later legislative cycles.
•
An expansion of access to living annuities for a period of four months from 01 May 2020 - 31 August
2020.
•
The Companies Act allows shareholder and board meetings to be held by way of electronic
communication, provided that all parties are able to participate in the meeting and communicate
concurrently without an intermediary. Meetings were already often held, in whole or in part, by
electronic means prior to Covid-19, however, the prevalence thereof has increased substantially since the
start of the pandemic.
•
In addition to the holding of meetings by electronic means, the Companies Act permits both shareholder
and board resolutions to be adopted by means of round robin written resolutions in appropriate
circumstances without the need to hold a meeting.
•
The Johannesburg Stock Exchange ("JSE") has also partnered with The Meeting Specialist to launch the
first virtual annual general meetings ("AGM") for listed companies in the RSA to enable clients to
engage with shareholders while the country is faced with tackling the Covid-19 pandemic.
•
If a company holds a virtual-only AGM and does not allow shareholders to ask questions in real time,
without moderation, or requires all questions to be submitted in advance, that meeting will not
constitute an AGM for the purposes of the Act.
Government measures in key jurisdictions
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