Did you know that certain tax compliant businesses are allowed to delay the payment of a portion of their provisional tax over the next few months?
A further tax relief measure has been introduced by government as a result of the COVID-19 pandemic and the national lockdown. This relief measure entails that tax compliant businesses with an annual turnover of R50 million or less will be allowed to delay the payment of a portion of their first and second provisional corporate income tax payments without penalties or interest over the next twelve months (01 April 2020 – 31 March 2021), without SARS levying penalties or interest on the deferred amount.
This deferral process allows for qualifying taxpayers to pay –
There will be no penalties or interest levied on the deferred amount, provided that the full tax liability is settled with the third provisional payment. The payment due on 31 March 2021 must therefore be made in full.
These provisions came into effect on 1 April 2020 and will apply to the first provisional tax periods ending on or after 1 April 2020, but before 1 October 2020, and to the second provisional tax periods ending on or after 1 April 2020 but before 1 April 2021.
Requirements to qualify for this tax relief measure are as follows:
Details regarding communications with SARS during the lockdown period are available on their website at www.sars.gov.za. You may also consult the Frequently Asked Questions on Tax Measures section relating to Tax Measures for Employees’ Tax, ETI and Provisional Tax available on the SARS website for further information.
For the moment and at date of publication, this is the information we have obtained. We will keep you updated should any further relevant information come to our attention.
Although we have used our best efforts to ensure that all information contained in this communication is accurate as at the date hereof, we cannot guarantee the accuracy thereof and recommend verification thereof before use.
This client information series is brought to you by the Siyandisa Trust in conjunction with PH Consult, a strategic partner of the Siyandisa Trust.
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