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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