Dear X3 HR and Payroll User,
Employment tax incentive (ETI) relief measures
The Ministry of Finance published the draft Disaster Management Tax Relief Bill and the draft Disaster Management Tax Relief Administration Bill on 1 April 2020. These draft Bills provide for relief measures for employers i.r.o. the ETI and PAYE. Although not promulgated yet, these draft Bills provide the necessary legislative amendments required to implement the COVID-19 tax measures. These measures contained in these draft Bills will take effect on 1 April 2020.
Proposed relief measures
The proposed measures for ETI are deemed to come into operation on 1 April 2020 for a 4-month period until 31 July 2020. These measures will only apply to employers who are registered for employees’ tax with SARS on or before 1 March 2020. Changes are indicated in blue below.
The ETI amounts will increase/change to the following (changes indicated in blue):
It is important to take note of the following:
- The attached pay plan patch(es) should only be integrated if the employer was registered for employees’ tax on or before 1 March 2020.
- If an employer is not registered for employees’ tax on or before 1 March 2020, the normal ETI rules will apply and the attached patch(es) should not be applied.
- After the four month period passed (31 July 2020), a patch containing the original ETI headings and grid values, will be supplied.
- If customisation was done on the statutory payplan for ETI, I suggest that a patch should be created with the current ETI headings and gird values which be restored again after the 4 month period passed.
- An online session will be presented on the 22nd of April at 9h00 to discuss the COVID-19 ETI changes.
You may request the Patch files from the Support desk who will be able to e-mail these files to you directly .
Kind Regards
X3 HR and Payroll Support Team