Tax

Employee quarantines, reduced demand, disrupted operations and restricted movements are just a few of the challenges faced by business during the Covid-19 pandemic.

Following announcement of the actions taken by government to combat the COVID-19 crisis, many South Africans may be aware of the proposed tax measures that are effective from 1 April 2020.

Further to the fiscal package as outlined by President Cyril Ramaphosa in his speech on the Escalation of Measures to Combat COVID-19, the Minister of Finance has announced on 29 March 2020 certain exceptional tax measures to be implemented.

Following President Cyril Ramaphosa’s announcement of fiscal relief for certain taxpayers, in light of other measures imposed to combat the COVID-19 crisis, National Treasury published explanatory notes on 29 March 2020, which outline exactly how the tax system will be used to ease financial distress during these times.  

The South African Revenue Service (SARS) has taken several precautionary measures in response to the risk of infection from COVID-19 which are aligned with and are in support of the initiatives implemented by the Department of Health.

Automation can help businesses decrease the R7.2 billion lost to admin. We’re racing towards the end of another tax year and we have heard about the Finance Minister’s proposed changes for the 2020/21 tax year. Not too long after Minister Tito Mboweni unveils changes to PAYE and other taxes during his budget speech on 26 February, the season for Employer Annual Reconciliations will open.

South Africa has been bleeding skills in recent years. A top reason being the punitive 'expat tax' regime promulgated in December 2017, and effective 1 March 2020.

Given the worsening economic realities still facing the Minister of Finance this year, it came as a pleasant surprise that he provided 5.2% adjustments to the individual tax brackets and rebates, resulting in real personal income tax relief for the already stretched individual taxpayers. 

South African small, medium and micro-enterprises (SMMEs) are struggling with weak economic growth, load shedding and crime. The regulatory burden also continues to hamper the growth of these businesses and their employment creation abilities.

Sparking an immediate celebration in the rand and bond markets, the 2020 Budget Speech ticked all the right boxes for markets, depicting a government that is reform-minded and ready to show its muscles.