06 Apr National Lockdown due to COVID -19
I wish to assure you that remotely, we are fully available for all your accounting and tax queries during this period of uncertainty that has seen a quarter of the world’s population on lockdown due to the coronavirus outbreak.
As per President Cyril Ramaphosa’s speech on the 23rd March 2020, the following assistance will be made available to businesses.
Relief in Terms of Tax
1. You can now delay SARS payments, and therefore improve cash flow
Tax compliant businesses with a turnover of less than R50 million will be allowed to delay 20% of their PAYE liabilities over the next four months and a portion of their provisional corporate income tax payments without penalties or interest over the next six months.
2. You can now claim more from the ETI incentive scheme
Businesses who employ young individuals and meet a certain set of requirements can already claim an incentive against the Employee Tax Incentive (ETI).
President Cyril Ramaphosa announced that these incentives will be increased by an additional tax subsidy of up to R500 per month for the next four months, limited to private sector employees earning less than R6 500 under the scheme.
3. Increased employee tax incentive payouts
SARS’ employment tax incentive reimbursements will also soon be paid out monthly instead of twice a year in a bid to get additional cash in the hands of compliant employers as soon as possible.
Debt Relief Fund and Business Growth/ Resilience Facility
We will also be providing you with more information regarding the Debt Relief Fund and Business Growth/ Resilience Facility that the government is implementing to help mitigate the impact during the expected economic slowdown on SMME’s.
In the meantime, I have attached a link to the Statement by Minister Ntshavheni on the department’s readiness to support SMMEs in response to the COVID-19 pandemic for your assessment.
“It is only in our darkest hours that we may discover the true strength of the brilliant light within ourselves that can never, ever, be dimmed.” – Doe Zantamata
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