Government measures in key jurisdictions 5th edition - Flipbook - Page 124
SouthAfrica
Litigation
•
Evictions are allowed under lockdown legislation currently in force.
•
Landlords are, however, struggling to fill vacant space as there is a trend of working
from home.
•
In the RSA, court proceedings are generally continuing as usual, save that presiding
officers in the courts have been given the discretion, and are urged, to use
teleconference or videoconference tools where possible in order to keep the court
system operational.
Are the courts
operating?
Tax
Has any new
legislation been
introduced in light
of Covid-19?
The Government of the RSA has introduced the following tax relief measures for
employers and employees:
•
From 1 April 2020, an expanded employment tax incentive of R750 per month for
qualifying low-income employees for a period of four months.
•
Deferral, for a period of five months, of 35% of employees tax (“PAYE”) payable by tax
compliant SMMEs (without penalties or interest).
•
Increased deductions from PAYE of certain taxdeductible donations made by employers on behalf of employees.
•
From 1 May 2020, a four-month holiday for skills development levy contributions (1% of
total salaries) applies.
•
The Covid-19 TERS provides tax-free unemployment insurance relief through
applications to the Unemployment Insurance Fund (“UIF”) for unemployment resulting
from Covid-19 closure of businesses.
•
Amounts received by employees on behalf of employers from a Covid-19 disaster relief
organisation may be deducted or excluded from the calculation of remuneration for
purposes of PAYE.
The following provisional tax relief has been introduced by Government and is available to
tax-compliant SMMEs:
• A deferral, for a period of 12 months, from 1 April 2020 to 31 March 2021, of a portion of
provisional tax liabilities.
• The first provisional tax payment is reduced to 15% (as opposed to 50%) of the estimated
total tax liability, while the second provisional tax payment is reduced to 65% (as
opposed to 100%) of the estimated total tax liability. The remaining 35% tax liability is
payable with the third provisional tax payment.
• Deferral relief for qualifying micro businesses with regard to interim payments, similar to
the 15% and 65% deferral relief with regard to provisional tax payments for tax-compliant
SMMEs.
Other relief measures introduced by the Government:
•
124
Fasttracking of VAT refunds for smaller VAT vendors that are in a net refund position by
permitting the filing of VAT returns monthly instead of every two months without the
need to apply to the revenue authority to do so.
Government measures in key jurisdictions
