The global pandemic caused by the coronavirus Covid-19 has already disrupted how we live, interact with one another and now, how we work. You have no doubt been swamped with questions from all quarters as your business tries to figure out how to manage the current 21-day national lockdown.
Global Business Solutions have set up a dedicated support service for their clients and are committed to not only ensuring that they have all the latest, accurate information, but that they are able to make the adjustments necessary NOW, and look beyond into the FUTURE, to ensure business sustainability and transformation into what will most definitely be a “new normal” post Covid-19.
The information supplied below is for information purposes only & has been developed from publicly available knowledge. This information should not be relied upon for detailed planning, but for guidance only.
FURTHER TAX MEASURES TO COMBAT THE COVID-19 PANDEMIC – By Charteris and Barnes
This is the fifth in a series of updates pertaining to any relief measures that have been made available by both the private and public sector. The purpose is to provide some clarity on the extended Tax Measures recently announced by the Department of National Treasury.
SUMMARY OF FURTHER MEASURES
Attached at the bottom of this page is a media statement issued on (23 April 2020). The statement outlines the various interventions which are highlighted below :
- Skills Development Levy Holiday: Effective 01 May 2020 there will be a four-month holiday on SDL contributions;
- Fast tracking of VAT refunds: – This appears to be aimed at smaller VAT vendors;
- Carbon Tax deferrals: – Industry specific, but there are further details in the attached media statement;
- A deferral for the payment of excise taxes on alcoholic beverages and tobacco products: – Industry specific, but there are further details in the attached media statement;
- Postponing the implementation of some Budget 2020 measures: – This refers to the proposed limitations on assessed losses brought forward from 2019 and limiting interest deductions in certain instances;
- An increase in the expanded employment tax incentive (ETI) amount: – The wage subsidy has been increased from R 500 per month per employee to R 750 per employee per month. This applies to employees who earn less than R 6,500.00 per month;
- An increase in the proportion of tax to be deferred and in the gross income threshold for automatic tax deferrals: – There is an increase in the % of employees tax that can be deferred, from 20% to 35%. Similarly, there are deferrals on provisional income taxes. Most importantly, the threshold for entities that qualify for this relief, has been increased from a gross income or R 50 Million per annum (ex. VAT) to R 100 Million per annum (ex. VAT). The income threshold will be applied for the current financial year, so the negative effects of the lockdown will be included in the determination of the annual income;
- Case-by-case application to SARS for waiving of penalties: – This applies to both larger and small businesses. The relief will be in the form of deferral of payments without incurring penalties. The entity will have to demonstrate that they are incapable of making the payments. Applications are considered on a case-by-case basis and will be made directly to SARS.
The financial-aid measures such as the debt-relief and growth resilience low-interest loans for SMME’s remain available as does the COVID19 TERS UIF scheme, where we are seeing some positive results.
With the effects of Covid-19, there has been an increase in poverty and hunger across our nation. It has not been easy to maintain a sense of normality in our communities as food is a daily challenge to all affected in some of our rural communities.
As a Chamber we are always promoting excellent work and abilities to combat elements that are negative in our community and try to support others who make a difference.
A fantastic opportunity has arisen where Ripples for Change www.ripplesforchange.org, Childline EC https://www.childlinesa.org.za/ and Border-Kei Chamber of Business have decided to connect and combined efforts in driving assistance measures in rural communities by collecting and distributing food parcels. (particularly in areas such as Chalumna, Ncera, Newlands, Needs Camp from BCM and Mooiplaas from Amathole)
We humbly request small or large donations of food or funding in showing support of this great initiative. The wish list in making this happen so far is as follows:
- Maize meal
- Bread Flour
- Samp and Soup mixes
- Coffee and Tea
- Rice, Pasta, Beans
- Tins of food
- Transportation to distribute parcels
- Storage facilities
- Funds to purchase items for a reduced price.
All companies who are able to assist in donating will receive a PBO certificate for tax benefits.
The Chamber fully supports the efforts of all involved especially Galit Cohen: Director Ripples for Change and her partners in Childline Eastern Cape – Okuhle Mdodana: Provincial coordinator.
If your team is able to assist in this initiative, kindly contact Zintle Quntu on email: email@example.com, or WhatsApp 0614350560.
Looking forward to your participation. #AloneTogether.
This document serves a draft framework for the risk-adjusted strategy to bring different sectors of the economy back to work. Classification of sector follows the Standard Industrial Classifications (SIC) as published by Statistics South Africa. Where an entire division is permitted, it should be assumed that all subgroupings are permitted as well.
Where only certain subgroupings are specifically permitted within a division, it should be assumed that other subgroupings are not. In the document, when moving between levels, the green text means additions or changes from the prior level.
For example, Level 4 adds forestry, logging and related services to Agriculture. It is now market in green in Level 4. Sectors and business organisations / trade unions are invited to submit comments on the schedule of services to be phased in as per the Covid-19 Risk Adjusted Strategy (RAA) to be implemented with effect from 01 May 2020.
Government has today put in the public domain a draft framework for the Risk-Adjusted Strategy to bring different sectors of the economy under Level Four of the Lockdown back to work as announced by President Cyril Ramaphosa.
In undertaking the Risk Adjusted Strategy, the National Coronavirus Command Council (NCCC) and the Ministerial Advisory Committee on COVID-19 intends to sequence and phased in key sectors and priority areas with a view to deepening the fight against COVID-19 whilst simultaneously rebuilding our economy. In this regard, sectors and business organisations / trade unions and members of the public are invited to submit comments on the schedule of services to be phased in as per the Covid-19 Risk Adjusted Strategy to be implemented with effect from 01 May 2020.
The draft framework can be accessed on: https://sacoronavirus.co.za/covid-19-risk-adjusted-strategy/ and https://www.gcis.gov.za/sites/default/files/docs/goods-services-movement-1.pdf.
Note that the classification of sectors in the draft framework follows the Standard Industrial Classifications (SIC) as published by Statistics South Africa. Where an entire division is permitted, it should be assumed that all subgroupings are permitted as well. Where only certain subgroupings are specifically permitted within a division, it should be assumed that other subgroupings are not.
In the document, when moving between levels, the green text means additions or changes from the prior level. For example, Level 4 now adds forestry and related services to Agriculture.
Feedback and/or comments should be submitted in writing preferably for Level Four and following the attached guidelines. South Africa will be moving to level 4 economic activity as of 1 May 2020 hence comments particularly on the proposals as contained in Level 4 is encouraged.
Completed submissions must be returned via email to firstname.lastname@example.org by 12h00, on Monday, 27 April 2020.