The National Treasury and SARS published the second batch of the 2021 Draft Taxation Laws Amendment Bill  (TLAB) and 2021 Draft Tax Administration Laws Amendment Bill (TALAB), which contains emergency tax measures taking effect on 1 August 2021. These measures include the expansion of the employment tax incentive (ETI) and a PAYE deferral. Although not promulgated yet, these Bills provide the necessary legislative amendments required to implement the Covid-19 tax relief measures.

• It is proposed that the expansion of the ETI be reinstated for another limited four-month period (Aug – Nov), following the design implemented in 2020 (in other words it is the same in principle, however for different months).
• It is proposed that the PAYE deferral relief measure be reinstated for another limited three-month period.

For more information please see the Explanatory Notes on the Emergency Tax Relief measures.

We will be releasing this update on the evening of the 23rd of August 2021.  Clients will be able to apply the changes once they log into their system on the 24th of August 2021.  We advise clients that will be making use of the extended ETI to only submit their EMP201's after they have regenerated the EMP201 report from the system after these dates.