The South African Revenue Service (SARS) will be implementing tax relief measures for businesses affected by Covid-19 and the recent unrest in some parts of the country.
These tax relief measures have been made possible by compliant taxpayers. SARS Commissioner Edward Kieswetter said SARS has managed to collect more revenue this year, compared to previous years.
“SARS will implement these tax relief measures because compliant taxpayers have paid their fair share of tax, making it possible for government to provide such a temporary safety net in a time of extreme difficulty,” Kieswetter said.
“The first quarter of the current financial year had exceeded expectations and had outperformed revenue collections for the same period over the past three years.” said SARS in a statement.
The Employment Tax Incentive will be among the measures that SARS will be implementing. The age eligibility as well as the amount that can be claimed for the incentive will be expanded, allowing SARS to support more vulnerable sectors in the labour market.
The expansion of the incentive will apply for a period of 4 months, starting on 1 August 2021 and ending on 30 November 2021.
Another measure includes extending the deferral of the payment of employees' tax liabilities (also known as PAYE) for tax compliant small to medium sized businesses. This extension will be for the period between 1 August and 31 October 2021.
The final measures implemented will go as follows:
“Tax compliant businesses with a gross income of up to R100 million will be allowed to delay 35% of their Pay–As- You Earn (PAYE) liabilities over the next three months, without penalties or interest.
“Deferral of excise duties on alcoholic beverages of up to three months by tax compliant licensees in the alcohol sector, on application setting out the circumstances justifying a deferral,” SARS said.