Government measures in key jurisdictions 5th edition - Flipbook - Page 125
SouthAfrica
Company
law matters
Have any measures
been put in place
to accommodate
social distancing
(such as remote
general meetings)?
•
Extension of certain prescribed time periods under tax Acts in which the lockdown period
will be regarded as days that have no legal effect and will not be counted for purposes of
the calculation of certain time periods. In this regard, the lockdown period is defined as
the period of lockdown between 23h59 on 26 March 2020 until 23h59 on 30 April 2020.
•
Due to the restrictions on the domestic sale of alcoholic beverages, payments of excise
tax due in August 2020 and September 2020 are deferred by 90 days without interest or
penalties for excise-compliant businesses.
•
The original 90 day deferral period granted in respect of excise tax payments due on
tobacco products in May 2020 and June 2020 have been extended to a period of 150
days, without interest or penalties. As such, an additional 60 days have been added to the
initial 90 day relief period granted.
•
Three-month deferral for the filing and first payment of carbon tax liabilities, which would
otherwise have been due by 31 July 2020, has been deferred until 31 October 2020.
•
Tax-deductible limit for donations, currently 10% of taxable income, is increased to 20% in
respect of donations to the Solidarity Response Fund during the 2020/21 tax year.
•
Certain corporate tax measures that were going to be introduced in terms of which the
deductibility of interest expenses, as well as the utilisation of assessed losses, would have
been limited will be postponed to later legislative cycles.
•
An expansion of access to living annuities for a period of four months from 01 May 2020 31 August 2020.
•
Relief for larger businesses and additional relief for tax-compliant SMMEs. The relief is not
enshrined in legislation, but takes the form of an invitation to apply on the revenue
authorities' website, which applications can be made by way of email.
•
The Companies Act allows shareholder and board meetings to be held by way
of electronic communication, provided that all parties are able to participate in the
meeting and communicate concurrently without an intermediary. Meetings were already
often held, in whole or in part, by electronic means prior to Covid-19, however, the
prevalence thereof has increased substantially since the start of the pandemic.
•
In addition to the holding of meetings by electronic means, the Companies Act permits
both shareholder and board resolutions to be adopted by means of round robin
written resolutions in appropriate circumstances without the need to hold a meeting.
•
The Johannesburg Stock Exchange ("JSE") has also partnered with The Meeting Specialist
to launch the first virtual annual general meetings ("AGM") for listed companies in the
RSA to enable clients to engage with shareholders while the country is faced with tackling
the Covid-19 pandemic.
•
If a company holds a virtual-only AGM and does not allow shareholders to ask questions
in real time, without moderation, or requires all questions to be submitted in advance,
that meeting will not constitute an AGM for the purposes of the Act.
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