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SARS TAX RELIEFSARS Tax measures have been put in place as part of the fiscal package as a result of the National State of Disaster and due to the significant and potentially lasting negative impacts on the economy from the spreading of the COVID-19 virus. The measures will take effect from 1 April 2020.Are you Tax Compliant? YEmployment Tax Incentives (ETI) Available to companies that are registered for Employees tax with SARS and submit income tax deductions on behalf of the employee.R 500 per employee of any age in private sector - (previously ETI was only applicable for employees between the ages of 18 and 29) earning between R 2000 and R 6 500 per month for a 4-month period. You can also deduct an amount from your EMP201 return for each employee between 30 to 65 years old and who earns between R4500 and R6500. PAYE tax deferral for SMMEs (and Sole Proprietors registered with SARS for employees tax) Can only be claimed against PAYE submitted to SARS. Not applicable for submissions that don’t have any PAYE component. In addition, SARS is allowing companies to defer 35% (announced 4/21) of their monthly PAYE liability, however as this is a deferred payment, the company will be required to pay this back to SARS over the 6 months, from 07 October 2020.This is only applicable 1 April which means that the first relief payment will be for PAYE due to SARS by 7th May, i.e. it does not include any payments that are due on 7th April (March salaries)Reduction of Employer/Employee contributions to SDL and UIF For the periods 1 April 2020 to 31 March 2021, SARS will grant a 15% deferral of provisional tax liabilities. SDL payment holiday of 4 months starting 1 April to 31 July 2020.No reduction on UIF payments.Provisional Taxfor the 1st provisional tax payment due between 1 April 2020 and 30 September 2020, the provisional tax calculation will be based on 15% of the total annual turnover.the 2nd provisional tax payment due between 1 April 2020 and 31 March 2021 will then be calculated at 65% of the total annual turnover.Provisional taxpayers will then be required to make a 3rd provisional tax payment to make up the difference. NSARS Registrations relief applies to tax compliant companies only - There is no relief or deferrals relating to VAT payments.Tax compliant means you are up-to-date with all your SARS obligations and can get a Certificate of Good Standing from SARS; if you are not you would need to settle all outstanding debt with SARS before being able to apply for these facilitiesShould a company who is not tax compliant make use of the relief above, there will be interest and penalties levied against the taxpayer should SARS discover that the taxpayer did not qualify.UIF WAGES/SALARY RELIEFThe UIF measures have been put in place as part of the fiscal package as a result of the National State of Disaster and due to the significant and potentially lasting negative impacts on the economy and employment. The measures are aimed at mitigating the impact on staff of businesses who are not able to pay wages as the result of the crisis. They will take effect from 1 April 2020.Are you UIF registered?YUIF Benefits include wages support to employees to cover loss of income. Funds are paid to employers who are obliged to pay it to employees. The benefit kicks in if you have to put staff on short-time and this reduces wages/salaries you can pay; or if you have to retrench staff because your business has contracted and you are no longer able to support the position.Short-time – Form UI2.7, Form UI-19 and letter from company confirming reduction in hours1.2 Retrenchment – Form UI 6A, UI-19, Salary scheduleNNew UIF Registration Application Form UI - 8Employers Declaration Form UI – 19 Copy of company registration documents Cor 14.3 or a disclosure obtainable from CIPC at a cost of R 30Certified copy of ID of Director and employees listed on the UI-19Email to: newui8registrations@.zaTurnover time unconfirmed as DOL are dealing with an overload of registrationsIMPORTANTThe conditions of employment and BCEA remain in force so you still need to follow all these processes.The UIF have indicated there will be no penalties if you have not been registered for UIF and now take this opportunity.COVID19-TERS (Temporary Employer/Employee Relief Scheme) has been?developed by the Unemployment Insurance Commissioner (UIC) to mitigate the impact of the 21-day national lockdown on workers, business and the economy.Who can apply forCOVID19 -TERS Online TERS GuideCompanies and Sole Proprietors registered with UIF and SARS compliant. Companies that are unable to pay their staff due to the Covid-19 pandemic disruption to business operations, you will be required to provide banking information for verification and assessmentHow to apply for COVID-19 TERS benefits. Online Application is recommended. to receive required documents, send email to: HYPERLINK "mailto:COVID19ters@.za" COVID19ters@.zaCompleted Application sent to: Covid19UIF@.zaWhat do you need for the Application? Your UIF Reference number supplied by the Department of Labour.Your PAYE number with rmation required to complete the National Disaster Payment excel template: ID numbers, full names, last wage received, Employee banking details and minimum sector wage (R3500).Completed national disaster payment excel template, in specific fine format. Guidelines to convert Excel to CSVOR csv export from accredited payroll system i.e. sage payroll, simple pay etcCompleted Employers account information spreadsheetCopy of latest Bank statement or account confirmation letter Memorandum of Agreement (≥ 10 employees) – employers, employees or bargaining plete Undertaking Letter Covid-19 TERSEvidence/payroll as proof of last three months employee ERNMENT FINANCIAL RELIEF FACILITIES Business Growth /Resiliency FundFor businesses to take advantage of supply opportunities resulting from COVID pandemic or shortage of goods in local market. You may only apply for one facility. REGISTER on the Department Small Business Administration database: .zaAPPLICATION LINK for Business Growth and Debt Relief Fund: HYPERLINK "" COVID-19-Finance-Relief-Application-BR1 .pdf Supporting documentation and criteria required for application includes:Must be registered and compliant with SARS and UIF.Latest financial statements or management accounts not older than 3 monthsDetails on allocation of funding to expensesDebt Relief FundFor businesses requiring cash-flow relief for operations, rent, paying suppliers and salaries. Tourism Relief Fund Relief for the Accommodation, Travel, Hospitality sector and the related services respectively. APPLICATION LINK .za Qualifying criteria include: Tax clearance certificate and pinUIF registration for employees employed by the businessSubmission of latest statements of financial position, financial performance and cash flowsThe fund is capped at R 50 000. The funds can be used towards fixed costs, operational costs, supplies and other pressure cost items. Awarded to enterprises with highest score in terms of criteria and is guided by the Tourism Broad Based Black Economic Empowerment Codes of Good Practice. Applications close 31 May 2020.PRIVATE FINANCIAL RELIEF SAFT – SA Future Trust (Oppenheimer Donation) (Nedbank) – nedbank.co.zaIncome impacted by Covid-19 and requires assistance to pay permanent staff salariesApplication process includes application form and Employee details.The funding is an interest free loan extended to the business, that will benefit employees 5-year interest free loan. Qualifying SMMEs will receive an amount of R 750 per qualifying employee per week, over a period of 15 weeks. Business Partners Fund/ Sukuma Relief Fund (Rupert Foundation Donation)Temporarily closed to applications as of 6 April. Local banksFNB, ABSA, STD Bank and Nedbank have several finance relief incentives that include payment holidays and specialised relief packages in the form of loans with reduced interest rates Banks will request information as per their requirements ................
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