Tax relief available
In order to assist with alleviating any cash flow burden arising as a result of COVID-19, Government proposes the following tax measures for tax-compliant businesses with turnover of less than R50 million per annum. These will only be applicable for 4 months from 1 April 2020 to 31 July 2020.
Deferral of the payment of employees' Tax Liability - Available from the South African Revenue Service
In order to assist with alleviating any cash flow burden arising as a result of COVID-19, Government proposes the following tax measures for tax-compliant businesses with turnover of less than R50 million per annum. These will only be applicable for 4 months from 1 April 2020 to 31 July 2020.
Deferral of payment of 35% of the PAYE liability, without SARS imposing administrative penalties and interest for the late payment thereof. The deferred PAYE liability must be paid to SARS in equal instalments over the six month period commencing on 1 August 2020, i.e. the first payment must be made on 7 September 2020.
The qualifying criteria are the following:
- Businesses with turnover of R50 million or less.
- The business needs to be fully tax compliant.
- Changes will be in effect as from 1 April 2020.
For further information, please visit
Provisional Tax Deferral of 35% of a taxpayer's provisional tax liability - Available from the South African Revenue Service
The provisional tax deferral allows qualifying taxpayers to pay:
- First provisional tax period = 15% of total estimated tax liability.
- Second provisional tax period = 65% of total estimated tax liability.
- Third provisional tax period = deferred 35%.
This applies to first provisional tax payments that are due during the period from 1 April 2020 to 30 September 2020 and to second provisional tax payments that are due during the period from 1 April 2020 to 31 March 2021.
The qualifying criteria are the following:
- Businesses with turnover of R50 million or less.
- The business needs to be fully tax compliant.
- Changes will be in effect as from 1 April 2020.
For further information, please visit
