COVID-19 Relief Mechanisms
April 6, 2020
Tax relief amid COVID-19
April 20, 2020

COVID-19 lockdown and SARS

President Cyril Ramaphosa declared a national state of disaster following the outbreak of COVID-19 which has also been declared a pandemic by the Word Health Organisation (WHO) on the 15th March 2020.

How will the lockdown impact my taxes and PAYROLL?

As part of the announcement made by President Cyril Ramaphosa the tax following relief measures were announced to assist businesses in distress due to the COVID-19 lockdown:

  • A tax subsidy of up to R500 per month for the next 4 months for private sector employees earning below R6,500 as per Employment Tax Incentive (ETI).

Details are yet to be confirmed; however, it is expected to be in the form of a wage subsidy via employers. Furthermore, The South African Revenue Service (SARS) also committed to pay employment tax incentive reimbursements monthly– instead of twice a year.

  • Tax-compliant businesses with a turnover of less than R50 million will be allowed to delay 20% of their pay-as-you-earn liabilities over the next four months, and a portion of their provisional corporate income tax payments – without penalties or interest over the next six months.

How can I claim UIF during the “lockdown” period?

  1. Complete the application form: 1 (form to be completed by employee);
  2. Complete the employers declaration forms: UI19 and 7 (form to be completed by employer);
  3. Complete banking details form: 8 (banking details form completed by the bank);
  4. Obtain a letter from the Employer confirming company shutdown or employee’s “temporary lay-off” is due to the Corona Virus (Reduced work time); and
  5. Attach a copy of the Employee’s ID document.

The confirmation Letter from both the employer and employee must be submitted together with the Illness application as proof that both the employer and employee have agree to the ‘special leave’.

The letters will replace the medical certificate on the Illness application form (UI2.2) as the beneficiary would have self –quarantined without prior consultation with a medical practitioner.

The claims can be submitted through the following channels:

  1. Online at: ufiling.co.za; or
  2. Email or fax the application forms to the nearest centre.

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)

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