Government measures in key jurisdictions 4th edition - Flipbook - Page 121
SouthAfrica
•
Litigation
•
Are the courts
operating?
Tax
Has any new
legislation been
introduced in light of
Covid-19?
The regulations issued in response to the lockdown prohibit evictions without a court order.
In the RSA, court proceedings are generally continuing as usual, save that presiding officers in the
courts have been given the discretion, and are urged, to use teleconference or videoconference
tools where possible in order to keep the court system operational.
The Government of the RSA has introduced the following tax relief measures for employers and employees:
•
From 1 April 2020, an expanded employment tax incentive of R750 per month for qualifying lowincome employees for a period of four months.
•
Deferral, for a period of five months, of 35% of employees tax (“PAYE”) payable by tax
compliant SMMEs (without penalties or interest).
•
Increased deductions from PAYE of certain tax-deductible donations made by employers on behalf
of employees.
•
From 1 May 2020, a four-month holiday for skills development levy contributions (1% of total
salaries) applies.
•
The Covid-19 TERS provides tax-free unemployment insurance relief through applications to
the Unemployment Insurance Fund (“UIF”) for unemployment resulting from Covid-19 closure
of businesses.
•
Amounts received by employees on behalf of employers from a COVID-19 disaster relief organisation
may be deducted or excluded from the calculation of remuneration for purposes of PAYE.
The following provisional tax relief has been introduced by Government and is available
to tax-compliant SMMEs:
• A deferral, for a period of 12 months, from 1 April 2020 to 31 March 2021, of a portion of provisional
tax liabilities.
• The first provisional tax payment is reduced to 15% (as opposed to 50%) of the estimated total tax
liability, while the second provisional tax payment is reduced to 65% (as opposed to 100%) of the
estimated total tax liability. The remaining 35% tax liability is payable with the third provisional tax
payment.
• Deferral relief for qualifying micro businesses with regard to interim payments, similar to the 15% and
65% deferral relief with regard to provisional tax payments for tax-compliant SMMEs.
Other relief measures introduced by the Government:
•
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Fasttracking of VAT refunds for smaller VAT vendors that are in a net refund position by permitting the fil
ing of VAT returns monthly instead of every two months without the need to apply to the revenue
authority to do so.
Government measures in key jurisdictions