Small Business Sector
SARS TAX RELIEF IS NOT AUTOMATIC
If the company can afford the tax liability, the company is required to pay the full amount. Proof to be provided that company is unable (due to the effect of COVID-19) to pay the liability. Tax relief is aimed at distressed companies.
Contributions to UIF and SDL
Potential temporary reduction in employer and employee contributions to both UIF and SDL. Requirements are still to be confirmed.
Delay of payments of taxes
|PAYE liabilities||Defer 20% of prospective PAYE liability over the next 4 months||Turnover ≤ R50 million|
|Provisional Corporate income tax (CIT)||Defer a portion of prospective CIT payments without penalties or interest over the next 6 months||Turnover ≤ R50 million|
Subsidies and ETI payments
|Subsidy provided||R00 subsidy per month for the next 4 months||Only for employees earning below R6500|
|SARS ETI payments||ETI refunds to be paid out by SARS to Companies monthly and not 6-monthly||Normal ETI rules apply|
|Relief options & claims||Requirements|
|Effective 20 march 2020||Compensation for occupationally
Claims to use Code U07.1
|Various reports, including:
W.CL.1 and W.CL.14
Exposure & medical
W.Cl.22(U07.1 as code)
Online Claims -Compensations Fund: CompEasy (www.labour.gov.za)
Submission of manual claims – Compensation Fund: firstname.lastname@example.org or phone 0860 105 350.
National disaster benefit (from UIF)
Solidarity response fund
Fund is set up to assist with the prevention, detection, care for hospital or medical care and to support those lives have been disrupted by the pandemic. This is still a work in progress. How the administration of this fund will work is yet to be announced.
|Growth and resilience fund||Debt relief fund|
Online applications: Available from 2 April 2020
|Funding to be used for||
|Amount of financial assistance||
UIF Temporary employer/employee relief scheme (TERS)
UIF may fund distressed companies. May only be claimed if employees do not claim UIF themselves.
Tourism relief fund
Business Partners Ltd
Appointed as administrator for disbursing R1 billion donation made by Rupert Family to assist SME businesses affected by the COVID-19 pandemic and their employees.
Information and application forms will be available on the website www.businesspartners.co.za, by Wednesday 1 April 2020.
SAFT (South African Future Trust)
Established by Nicky and Jonathan Oppenheimer.
A R1 billion fund available from 3 April 2020 to South African businesses impacted by the coronavirus. The money will be paid out directly to employees of small, medium and micro-sized businesses as interest-free loans over a 5 year term.
Employees themselves will not be liable to pay the money back, but companies will be.
It is expected that the typical loan amount per employee will be around R750/week, for a period of 15 weeks.
The scheme is currently available to clients of the four banks, ABSA, Nedbank, Standard Bank, FNB. SMMEs need to apply through their main bank.
ELIGIBILITY CRITERIA FOR SMEs:
Standard Bank – email@example.com
Students with loans and businesses with annual turnover less than R20 million can apply for:
ABSA – 0860 008 600
Corporate, wealth, business bank, private bank and retail customers in need of short-term liquidity relief may apply for the relief programme. Clients who are up to date on their payments are eligible to apply.
Individuals with loans may:
Corporate and business banking clients:
Nedbank 0860 555 111
Nedbank will review the client’s current loan repayment commitments and consider the most appropriate solutions that will ease the cash flow commitments. Each case will be reviewed individually, and the most appropriate solution recommended.
For clients requiring an early release on their investment funds to supplement cash flow, Nedbank will waive the penalty fee for up to the value of R200 000 at an overall portfolio level.
This offer applies:
FNB 087 575 9405
Interventions will be for all products with FNB, will be available for a period of three months and cover the following:
Interest and fees will continue to accumulate on outstanding balances. Individuals and business customers can contact FNB via their usual digital and assisted banking channels to enquire about these services.
Unemployment Insurance Fund
During South Africa’s Lockdown, workers are humbly urged to submit Unemployment, Reduced Work Time, Maternity, Illness & Adoption claims on www.ufiling.co.za/uif or email/fax to the addresses on the picture below.
Continuation forms can be obtained from www.labour.gov.za & sent to these addresses. For enquiries during lockdown, please contact our Hotline: 012 337 1997
Germiston.BCP@labour.gov.za – 0864397295
Petermari.BCP@labour.gov.za – 0864397296
EastLondon.BCP@labour.gov.za – 0864397299
Capet.BCP@labour.gov.za – 0864397300
George.BCP@labour.gov.za – 0864397301
NorthWest.BCP@labour.gov.za – 0864397302
Limpopo.BCP@labour.gov.za – 0864397303
Mpumalanga.BCP@labour.gov.za – 0864397304
Freestate.BCP@labour.gov.za – 0864397305
Online.BCP@labour.gov.za – 0864397306
Durban.BCP@labour.gov.za – 0864397297
Portelizabeth.BCP@labour.gov.za – 0864397298
NorthernCape.BCP@labour.gov.za – 0864397309
Johannesburg.BCP@labour.gov.za – 0864397294
Pretoria.BCP@labour.gov.za – 0864397290
This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)