PAYE & Income Tax Relief

Tax measures to combat the COVID-19 Pandemic as well as explanatory notes on COVID-19 tax Measures..  You can ignore the ETI benefits and just look at both the PAYE and Provisional Tax relief.

Summary extracted from the media statement view full article>
Measures will help businesses focus on staying afloat: 
  1. Skills development levy holiday: From 1 May 2020
  2. 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.
  3. An increase in the expanded employment tax incentive amount – Age is also increased for the second phase (Employers to be allowed ETI amount of R500 for employees who are between the ages of 30 and 65 years who earn less than R6 500)
  4. An increase in the proportion of tax to be deferred and in the gross income threshold for automatic tax deferrals –  20% to 35%
  5. Case-by-case application to SARS for waiving of penalties: Larger businesses 
 
Tax measures aim to assist individual taxpayers:
  1. Increasing the deduction available for donations to the Solidarity Fund
  2. Adjusting pay-as-you-earn for donations made through the employer 
  3. Expanding access to living annuity funds