Of immediate interest, with companies under severe cash flow stress and receiving little to no income with the current lock-down situation in South Africa, we waited anxiously for President Ramaphosa’s address last night. This article focuses on the additional tax relief measures to be introduced as covered by the President on 21 April 2020.
The President mentioned:
1. A 4-month holiday for companies’ skills development levy contributions
2. Fast-tracking VAT refunds
3. A 3-month delay for filing and first payment of carbon tax
4. Applications for tax deferrals are now applicable to all companies whose turnover is up to R100 million per year
5. The proportion of PAYE payment that can be deferred will be increased to 35 percent
6. Businesses with a turnover of more than R100 million a year can apply directly to SARS on a case-by-case basis for deferrals of their tax payments
7. No penalties for late payments will be applicable if they can show they have been materially negatively impacted in this period
8. Taxpayers who donate to the Solidarity Fund will be able to claim up to an additional 10 percent as a deduction from their taxable income
We await further details from the Minister of Finance on the above and other tax-related announcements.
ACS Plus continues to stay informed of all the latest news for the best outcome for our clients so please contact us if you have any questions or concerns.
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