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South Africa: Tax Relief measures announced by President Cyril Ramaphosa on 25 July 2021

The President of South Africa announced some tax relief measures during his speech on Sunday 25 July 2021, which includes Employment Tax Incentives (ETI) changes.

In the President’s address to the Nation on 25 July 2021, he announced measures to support the recovery of the economy by –

  • expanding the Employment Tax Incentive (ETI) for a period of four months to include any employee earning below R6 500 and to increase the incentive amount by up to R750 per month which will encourage employers to hire and retain employees, especially those in the retail and hospitality sectors which have been affected worst, and
  • allowing employers to defer PAYE for a period of 3 months to provide businesses with the additional cash flow with an automatic deferral of 35% of PAYE liabilities for employers with revenue below R100 million.
  • Click here to view details of the speech.

Currently, there is no Disaster Management Tax Relief Bill or Disaster Management Tax Relief Administration Bill published containing these tax relief measures. Until then, no changes can be implemented in the system or applied by employers, since the details and rules of these tax relief measures are not available yet.

We will communicate the relevant changes and the impact of new regulation on your payroll here on Sage City.

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Parents
  • *Update

    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.

Reply
  • *Update

    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.

Children
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