Refunds, deductions and deferrals – SA announces major tax breaks

It's a silver lining for businesses and individuals: Cyril Ramaphosa has got a plan to ease the tax burden on South Africans during this health crisis.

Refunds, deductions and deferrals – SA announces major tax breaks

It’s not often the president rocks up on television to show-off a R500 billion war-chest. Tuesday night saw Cyril Ramaphosa take to the airwaves to explain how South Africa was going to fund its economic recovery efforts – as well as making several multi-billion rand interventions for businesses, he also unveiled a number of tax interventions.

How much South Africa will spend on economic relief

With incomes and revenue all but evaporated by the global health crisis and subsequent lockdown, the government have stepped in to cushion the blow. Around 10% of South Africa’s GDP will go towards alleviating the gloom, as our already-clapped economy enters into its darkest hour.

Ramaphosa, always the great orator, sent a rousing message to South Africans about “creating a new economy” based on fairness and justice. Certainly, these tax interventions show he’s ready to walk the walk.

Major tax breaks coming to South Africa

  • There will be a four-month tax holiday for companies’ skills development levy contributions.
  • All VAT refunds will be fast-tracked.
  • A three-month delay for filing and first payment of carbon tax has been implemented.
  • The proportion of PAYE payments that can be deferred will be increased to 35%.
  • The previous turnover threshold for tax deferrals is being increased to R100 million a year.
  • Businesses with a turnover of more than R100 million a year can apply directly to SARS on a case-by-case basis for deferrals of their tax payments.
  • Taxpayers who donate to the Solidarity Fund will be able to claim up to an additional 10% as a deduction from their taxable income.
  • These tax measures should provide at least R70 billion in cash flow relief or direct payments to businesses and individuals.

Tax interventions – fines for late payments may also be suspended

Ramaphosa also told the nation that businesses won’t face fines for late payments, providing they can prove that the global health crisis has impacted their operations:

“We’re now embarking on the second phase of our economic response to stabilise the economy… No penalties for late payments will be applicable if businesses can show they have been negatively impacted in this time. The finance minister will provide further details on the above and other tax-related announcements.”

Source : The South African More   

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Weather forecast, alerts and UVB index for all South African provinces, 22 April 2020

This forecast is designed to be a quick overview of what lies in store.

Weather forecast, alerts and UVB index for all South African provinces, 22 April 2020

Weather data provided by the South African Weather Service. For a detailed forecast of your province, click here.

Warnings: None.

Watches: None.

Special weather advisories: None.

Gauteng: Fine and cool to warm, becoming partly cloudy in the afternoon.

UVB sunburn index: High.

Mpumalanga: Morning fog patches along the escarpment, otherwise partly cloudy and cool to warm in the Lowveld.

Limpopo: Cloudy in the east at first with morning fog patches along the escarpment, otherwise partly cloudy and warm.

North-West Province: Partly cloudy and warm.

Free State: Partly cloudy and warm with isolated thundershowers in the central and southern areas.

Northern Cape: Morning fog patches along the coast, otherwise partly cloudy and cool to warm but hot in the north. Isolated thundershowers are expected over the central and south eastern areas. The wind along the coast will be light to moderate northerly to north-westerly, becoming southerly to south-westerly from the afternoon but fresh south-easterly in the evening.

Western Cape: Partly cloudy and warm over the central and eastern interior, otherwise cloudy and cool with scattered showers and rain in the extereme south-west. Isolated showers are expected over the western interior, spreading along the south coast in the evening. The wind along the coast will be strong to near gale north-westerly over the south west, otherwise moderate to fresh northerly to north-westerly. It will become moderate to fresh south-westerly from the afternoon but strong to near gale between Cape Agulhas and Stilbaai.

UVB sunburn index: High.

Western half of the Eastern Cape: Partly cloudy and warm to hot with isolated showers and thundershowers in places from the afternoon. The wind along the coast will be Light westerly becoming moderate to fresh south-westerly in the afternoon.

Eastern half of the Eastern Cape: Partly cloudy and warm to hot with isolated afternoon thundershowers, except in the north east. The wind along the coast will be Light northwesterly becoming moderate to fresh northeasterly but southeasterly in the south becoming fresh to strong southwesterly in the evening.

Kwazulu-Natal: Morning fog patches over the interior, otherwise fine and warm. The wind along the coast will be Moderate north-westerly north of Richard’s Bay in the morning, otherwise moderate to fresh north-easterly.

UVB sunburn index: High.


Tweets by SAWeatherServic
Source : The South African More   

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