South Africa's Ministry of Finance announces tax subsidy measure to mitigate impact of COVID-19
2020-03-31 15:06:23 [Print]
It is said that South Africa's Ministry of Finance announced a tax subsidy measure for some employers to mitigate the impact of COVID-19 on economy.
The Ministry of Finance said that as the spread of COVID-19 has had a significant and potentially lasting negative impact on the economy, the new measure, which will come into effect on April 1, goes beyond the tax proposal of the budget review for 2020. The ministry will provide a tax subsidy of up to ZAR500 per month for employees in private sector who earns less than ZAR6,500 per month over the next four months. In addition, the South African Revenue Service will expedite the payment of employment tax incentive rewards, from twice a year to once a month, so that cash can be delivered as quickly as possible to employers who run business by law. Tax-paying companies with a turnover of no more than ZAR50 million will be allowed to defer 20% payment of their employees' taxes in the next four months and postpone payment of some temporary corporate income taxes in the next six months without paying fines or interests.
The Ministry of Finance said that as the spread of COVID-19 has had a significant and potentially lasting negative impact on the economy, the new measure, which will come into effect on April 1, goes beyond the tax proposal of the budget review for 2020. The ministry will provide a tax subsidy of up to ZAR500 per month for employees in private sector who earns less than ZAR6,500 per month over the next four months. In addition, the South African Revenue Service will expedite the payment of employment tax incentive rewards, from twice a year to once a month, so that cash can be delivered as quickly as possible to employers who run business by law. Tax-paying companies with a turnover of no more than ZAR50 million will be allowed to defer 20% payment of their employees' taxes in the next four months and postpone payment of some temporary corporate income taxes in the next six months without paying fines or interests.
