Proactive #TaxDivas

by Amanda Roothman on 31 July


Your Proactive #TaxDivas focus their efforts on things they can do something about. The nature of their energy is positive.

On 25 July 2021, President Ramaphosa announced new emergency tax measures in response to the continuing pandemic and unrest.

#TeamExponentialBrilliance welcomes the following measures set in place:

  • Under the Employment Tax Incentive, a tax subsidy of up to R 750 for the next four months, for private sector employers who have employees earning below R 6 500 per month;

    • The first extended ETI may be claimed in the EMP201 return for August 2021, due on 7 September 2021.

    • The maximum monthly amount that will be permissible during this period will be increased according to the following criteria:

      • Employees eligible under the current ETI Act from R 1 000 to R 1 750 per month in the first qualifying 12 months and from R 500 to R 1 250 in the second 12 qualifying months.

      • Employees from ages 18 to 29, who are no longer eligible for the ETI as the employer has claimed ETI i.r.o. those employees for 24 months, or are not eligible as they were in the employer's employment before 1 October 2013, from not eligable to R 750 per month.

      • Employees from ages 30 to 65 years who are not eligible for the ETI due to their age, from not eligible to R 750 per month.

    • SARS will also pay monthly ETI refunds for the 4-month period, instead of every 6 months as per normal procedure. These refunds will commence on 13 September 2021.

  • Deferral of 35% of the PAYE liabilities over the next three months, August 2021 to October 2021, with no interest or penalties;

    • The first deferment may be claimed in the August 2021 EMP201 return as well, which is due for submission and payment on 7 September 2021.

    • SARS will issue an EMPSA (statement of account) reflecting the deferred amount. If your payment is made late, you will forfeit the benefit of the tax relief and SARS will impose penalties & interest on the calculated total payable. SARS has advised that you check the EMPSA 48 hours after payment, to ensure that the deferment was not revoked due to non-compliance.
    • Repayment of the 35% deferred amount will be made over a 4-month period that will commence from 7 December 2021 with the last payment due on 7 March 2022.

  • Deferrals upon application to SARS of up to three months for excise duty payments for businesses in the alcohol sector.

    • Due to the restrictions on domestic sale of alcoholic beverages, businesses may apply to SARS to obtain deferrals of up to 3 months for excise duty payments. These businesses must be able to justify the circumstances to SARS on application. This will assist a significant number of businesses that are under pressure in terms of cash flow and their ability to honour payments to SARS. Applications must be sent to OSC@sars.gov.za.

The catch:

To qualify for any of the above measurements, your company must be tax compliant. This means that your company:

  • Is registered for the applicable taxes;
  • Has no outstanding returns for any taxes you are registered for; and
  • Has no outstanding debt for any taxes you are registered for, but excluding:
    • Prior arranged instalment payment arrangements;
    • Compromise of tax debts; and
    • Payment of tax suspended pending an objection or appeal.

So, if your company happens to NOT be tax compliant, do what matters now. Contact the #TaxDivas at #TeamExponentialBrilliance. Our positive energy will be of great value to your company.

Allow us to assist you to set measures in place. Do not procrastinate.

Remember, the best preparation for good work tomorrow, is to do good work today. When you experience a negative circumstance or event, do not dwell on it. Be proactive - put your attention on what you need to do to bring the situation to a positive result.

We are South Africans. We will prevail!

 

Source: National Treasury South Africa

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