We know that the COVID-19 Lockdown is taking its toll on every business, but it’s not all bleak – the National Treasury has announced a 4-month payment holiday on Skills Development Levies starting 1 May 2020.
While businesses are suffering much larger losses, this relief measure would definitely provide businesses with an additional portion of expendable funds to pay their other pressing bills. According to SARS, all businesses that are registered for SDL will automatically be granted this payment holiday. The SARS Tax Relief Page states the following:
Q: HOW DO I CLAIM THE SDL PAYMENT HOLIDAY?
A: THE SDL PAYMENT HOLIDAY WILL BE AUTOMATICALLY PROVIDED. THE ZERO AMOUNT SDL LIABILITY WILL BE DEFAULTED ON THE EMP201 RETURN FOR THE FOUR MONTH PERIOD FROM MAY TO AUGUST 2020.
In conjunction with other tax relief measures announced on 23 April 2020, businesses can make use of these measures to promote their own sustainability as we navigate our way through the pandemic and its impact. Other measures include:
- Adjustments to PAYE for donations (to the Solidarity Fund) made through the employer
- An increase in the proportion of tax to be deferred and in the gross income threshold for automatic tax deferrals
- Case-by-case application to SARS for waiving of penalties
- Three-month deferral for filing and first payment of carbon tax liabilities
- Fast-tracking of value-added tax (VAT) refunds
For your ease of reference, get in touch and we will assist you further!