We will keep monitoring the Covid-19 related measures and send updates as they become available. Please feel free to contact us should you have any questions or require assistance. We thank the Austrian Trade Commission for providing us with these information.
Dear ABC Members,
last week we have dedicated most of our efforts to keeping you informed about about the final schedule (link)of the “lockdown” and what exactly these regulations specifically stipulate as “essential goods and services” and as well as the restriction on the movements of persons and goods. Just a short recap: businesses providing essential goods and services are required to apply to the Companies and Intellectual Property Commission (CIPC) Bizportal website at http://www.bizportal.gov.za/services.aspx to obtain a certificate from the Commission that allows them to continue trading. Essential staff will have to carry permits (Annex C of the final schedule) when travelling during lockdown.
This week we will take a closer look at the support measures the South African government has put in place for businesses affected by the lockdown:
COVID-19: SARS – Tax Relief Measures
Tax compliant businesses with a turnover of less than R50 million will be allowed to delay 20 % of their pay-as-you-earn (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, i.e. an employer must complete the return (EMP201) and pay at least 80% of the PAYE liability on/before the due date of the return to qualify for the 20 % automatic extension of payment.
Important: this automatic “deferment of payment” is not applicable to any VAT payments due to SARS and VAT remains 100 % payable to SARS on/before the due date.
A tax subsidy of up to ZAR 500 per month for the next four months will be provided for those private-sector employees earning less than ZAR 6.500 per month through the Employment Tax Incentive.
Regarding imports and exports of goods a notice and measures of control has been issued by SARS for importers/exporters. A summary of the position of neighbouring countries.
For the latest on Covid-19 impact on SARS visit: https://www.sars.gov.za/Media/Pages/CoronaVirus.aspx
COVID-19: UIF – National Disaster Benefit
The Minister of Employment and Labour has announced that the Unemployment Insurance Fund will compensate affected workers through a new “National Disaster Benefit” and the existing illness, reduced work time and unemployment benefits. This new “National Disaster Benefit” and any other normal UIF benefit is only applicable to employers who are registered with UIF and make monthly contributions as required by the Contributions Act of 2002. You can access the step by step guide here.
SMME Fund and IDC funding facility for industrial operations
We understand this funding is only available to South African owned businesses. A special website of the Department of Small Business Development: www.smmesa.gov.za is now open for registration where companies can specify what assistance they require. The DTI and the IDC have set up a funding facility for essential industrial operations with R 700 million being allocated for working capital, equipment and machinery.
We will keep monitoring the Covid-19 related measures and send updates as they become available. Please feel free to contact us should you have any questions or require assistance.
Best regards and stay healthy,