06 Apr COVID 19 – Tax Relief
Pam here from Accounting Plus.
As you might be aware, there are tax relief’s that have been made available to SMME’s during this period where the world faces the Corona Virus epidemic.
Let’s take a look at one of the tax relief.
1. Delay 20% of employees’ tax liabilities
In order to assist with alleviating any cash flow burden arising as a result of the COVID-19 outbreak, Government proposes the following tax measures for tax compliant small to medium sized businesses, for a limited period of four months,
beginning 1 April 2020 and ending on 31 July 2020:
- Deferral of payment of 20% of the PAYE liability, without SARS imposing administrative penalties and interest for the late payment thereof.
- The deferred PAYE liability must be paid to SARS in equal instalments over the six month period commencing on 1 August 2020, i.e. the first payment must be made on 7 September 2020.
For the purposes of this proposal, small or medium sized business is defined to
mean any business with an annual turnover not exceeding R50 million.
Meaning, with employees tax (PAYE/UIF/SDL) being due on the 7th April 2020 for the month March 2020, Circle Media only needs to pay over to SARS 80% of the PAYE/UIF/SDL and the remaining 20% can be paid in instalments over six months. With the first instalment being paid on the 7th September 2020.
Hope it makes sense and let me know if you have any questions.
Warm regards 🙂
Pamella Jabu Ndzumo
Accounting Plus (Pty) Ltd l Registration # : 2017/055363/07 l Registered Accountant – Membership # : 20211377 l SARS Registered Tax Practitioner – Membership # : PR-0098910 l Cell : 083 212 8588 l Website : www.ndzumoconsulting.co.za l Proudly level 1 BEE Compliant l Proudly 100% female owned