What is PAYE deferral?
Payment of Pay-As-You-Earn (PAYE) for the months of Apr - Jul may be deferred (delayed) until later in the year.
The COVID-19 Tax Relief for PAYE is available for the four-month period from 1 April 2020 to 31 July 2020.
35% of the total PAYE liability for the chosen months may be paid later.
Timelines
Employers making use of this relief must pay back the deferred amount in 6 equal instalments from Aug'20 - Jan '21.
In Aug SARS will determine the equal payments that you have deferred and include it in the Statement of Account, which you can request from 15 Aug.
Remember
This deferral relief measure is available to employers, excluding Government or Municipality departments, who requires assistance to provide financial stability to their employees.
We can help you with all the calculations you need right here.
Complete the EMP201 as per normal with the full PAYE Liability. The form will automatically use 100% value and you can't change this.
Calculate the Total Payable as (65% of the PAYE Liability) less ETI utilised plus SDL payable (if SDL holiday is not used) plus UIF Payable.
Remember if you make any late payment, that you will forfeit your benefit from SARS and still be liable for penalties & interest.
Check your Statement of Account 48 hrs after submitting the EMP201 to ensure SARS has not revoked the discount due to any reason.
SDL HOLIDAY
A payment holiday is allowed by SARS for the months of May - August for any payment of SDL. Employers do not have to declare any SDL on the EMP201 returns or make payments.
TERS RELIEF
Additional UIF payments to companies and employees are being made in cases where companies had to close partially due to lockdown.
Read more here.
ETI RELIEF
Qualifying employees can claim an additional amount of relief for Employee Tax Incentive (ETI).
Read more here.
NO PENALTIES
Companies that can show that they are incapable of making payments due to the crisis may apply to SARS to defer payments without incurring a penalty.
CARBON TAX
Carbon tax payments were moved out from 31 July to 31 October 2020..
PROVISIONAL TAX
Tax Relief for companies with turnover of less than R100m. Usually 50% of expected tax bill must be paid 6 months into the year. It is now allowed to only pay 15%.
VAT REFUNDS
Smalled companies who are registered as VAT vendors may claim VAT on a monthly basis instead of every 2 months.
EXCISE DUTY
Cigarette & alcohol companies liable to pay Excise Duty in May & June, have received extention of 90 days extra to pay.
SMME funding
The Debt Relief Finance Scheme assists distressed small companies. The Business Growth/Resilience Facility helps take advantage of supply opportunities as result of shortage of certain goods. You need to register HERE.
TOURISM COMPANIES
A once-off grant of R50'000 will be paid by the Department of Tourism to approved small/medium enterprises.
We can help here.
FILM INDUSTRY
Players in the industry may submit to the NFVF application for script development, post production projects & animation. The NFVF also provides R500'000 to its commissioned members.
MINIBUS TAXI
Clients of SA Taxi may enjoy a month payment holiday from April.
We can help here.
MUSICIANS
SAMPRA has announced bringing forward roaylties to be distributed to musicians from August to April 2020.
SPAZA SHOPS
Spaza shops may receive funding to buy stock & get bullk discounts. They need to however be registered with CIPC, UIF & SARS.
Tax Ninja is a team of
