05 Aug Tax Relief for SMMEs
2021 Emergency Tax Relief for SMMEs
On 25 July 2021, President Ramaphosa announced additional emergency tax measures for Small, Micro, and Medium Enterprises (SMMEs). This was in response to the continuing COVID-19 pandemic and recent unrest in the country that resulted in looting and the destruction of businesses. Further details of the proposed measures were provided by the Minister of Finance and National Treasury on 28 July 2021.
Additional tax relief measures for SMMEs
- The introduction of a tax subsidy of up to R750 per month for the next four months for private sector employers who have employees earning below R6500. This subsidy will be provided under the current Employment Tax Incentive.
- Tax compliant businesses with a gross income of up to R100 million will be allowed to delay 35% of their Pay –As- You Earn (PAYE) liabilities over the next three months, without penalties or interest.
- Tax compliant businesses in the alcohol sector can apply to the SARS for deferrals of up to three months for excise duty payments.
Requirements to qualify for tax relief
In order to qualify for the emergency tax measures, you must be tax compliant, which means that you:
- Are registered for all required taxes; and
- Have no outstanding returns for any taxes you are registered for; and
- Have no outstanding debt for any taxes you are registered.
Link to official SARS Announcement: https://www.sars.gov.za/businesses-and-employers/small-businesses/