Treasury announces additional state of disaster tax measures

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Treasury announces additional state of disaster tax measures

Tito Mboweni, South African Minister of Finance, delivers his 2019 Mid-Term Budget Statement within the South African Parliament in Cape Town, on October 30, 2019. Picture: RODGER BOSCH / AFP

These measures are over and above the tax proposals made within the 2020 Budget on 26 February 2020.

Finance Minister Tito Mboweni on Sunday introduced distinctive tax measures to counter the impression of the coronavirus (Covid-19) pandemic on the nation’s economic system.

“The minister of finance has introduced the next distinctive tax measures as half of the fiscal package deal outlined by president Cyril Ramaphosa on 23 March 2020 in his speech on the escalation of measures to fight Covid-19,” stated the ministry in a press release.

The measures come as South Africa is presently underneath a 21-day lockdown, which bought underway at midnight on 26 March. To date, South Africa has recorded over 1,000 circumstances of the virus.

These measures are over and above the tax proposals made within the 2020 Budget on 26 February 2020.

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The tax measures embrace:

– The introduction of a tax subsidy to employers of as much as R500 per 30 days for the subsequent 4 months for private-sector workers incomes under R6,500 underneath the Employment Tax Incentive. This will assist over four million staff.
– The South African Revenue Service (Sars) will speed up the cost of employment tax incentive reimbursements from twice a 12 months to month-to-month to get money into the arms of compliant employers as quickly as potential.
– Tax compliant companies with a turnover of R50 million or much less will likely be allowed to delay 20% of their workers’ tax liabilities over the subsequent 4 months and a portion of their provisional company revenue tax funds with out penalties or curiosity over the subsequent six months. This intervention is anticipated to help 75,000 small and medium-term enterprises.

“The tax changes are made in gentle of the nationwide state of disaster and because of the vital and probably lasting adverse impacts on the economic system from the spreading of the Covid-19 virus,” stated the ministry.

“It stated there’s a vital want for presidency interventions to help with job retention and help companies that could be experiencing vital misery.”

The measures will take impact from 1 April 2020.

Bills to be taken to parliament

“The measures will likely be given authorized impact in phrases of two payments to be tabled when parliament reconvenes later this 12 months for retrospective enactment. These payments are the Disaster Management Tax Relief Bill and the Disaster Management Tax Relief Administration Bill,” added Treasury.

The draft payments, alongside their draft explanatory memorandum, will likely be printed for public touch upon the nationwide treasury and South African Revenue Service (Sars) web sites by 1 April 2020.

“Together with the Commissioner of Sars, nationwide treasury can even be contemplating additional distinctive changes to help with Covid-19 aid efforts and to the tax remedy of newly shaped funds on this regard,” stated the ministry.

The draft explanatory notes relating to the Covid-19 tax measures will be discovered on the nationwide treasury (www.treasury.gov.za ) and Sars (www.sars.gov.za ) web sites.

Comments on the draft explanatory notes will be made to [email protected]

For extra information your means, Orignaly Published on https://citizen.co.za  and 

live at 2020-03-30 09:33:10

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