Skills Development Levy (SDL) Business tax relief measures – All employers who are registered for SDL automatically qualify for the SDL Payment Holiday The zero amount SDL Liability will be defaulted on the EMP201 return for the four-month period from May to August 2020. #TaxReliefMeasures – 8 May 2020
How much can a business defer for the COVID-19 Tax Relief for PAYE? Tax compliant businesses having a gross income threshold of R100 million or less can make a payment of 65% of the total PAYE liability and defer 35% of the total PAYE liability for the month
How to apply for the waiving of penalties for tax debt
- Larger businesses (with gross income of more than R100 million) that are incapable of making payment due to the COVID-19 disaster, may apply to defer tax payments without incurring penalties by emailing us on COVID19IPAaboveR100m@sars.gov.za. Note the requirements below.
- Similarly, businesses with gross income of less than R100 million can apply for an additional deferral of payments without incurring penalties by emailing us on COVID19IPAbelowR100m@sars.gov.za. Note the requirements.
Corporate Income Tax
Postponing the implementation of some Budget 2020 measures: The 2020 Budget announced measures to broaden the corporate income tax base by (i) restricting net interest expense deductions to 30 per cent of earnings; and (ii) limiting the use of assessed losses carried forward to 80 per cent of taxable income. Both measures were to be effective for years of assessment commencing on or after 1 January 2021. These measures will be postponed to at least 1 January 2022.
Fast-tracking of value-added tax (VAT) refunds: Smaller VAT vendors that are in a net refund position will be temporarily permitted to file monthly instead of once every two months, thereby unlocking the input tax refund faster and immediately helping with cash-flow. SARS is working towards having its systems in place to allow this in May 2020 for Category A vendors that would otherwise only file in June 2020.
View additional business tax relief on the SARS website
COVID-19 Tax Relief Measures Webinar 8 May 2020
The aim of the webinar was to share information on COVID-19 tax relief measures and to make provisions of the legislation more understandable.