SARS - Employers' Tax Incentive

FUND DETAILS

Name of the fund

SARS - Employers’ Tax Incentive

Fund administered by

SARS

Type of relief/support

Deferral of payment of 20% of PAYE liability

Total size of the fund

Not stipulated

Who does the fund target?        

All businesses compliant with UIF Act

Sector target       

All sectors

Minimum amount you can apply for                  

Not stipulated

Maximum amount you can apply for                

35% of PAYE over the next four months

RELIEF CRITERIA FOR THE SARS - EMPLOYERS’ TAX INCENTIVE: 

  • A taxpayer who is conducting a trade with a gross income of R100 million per annum or less for the year of assessment the period payment is being made for.
  • The gross income must not include more than 10% of income derived from interest, dividends, foreign dividends, rental from letting fixed property and any remuneration received from an employer. 
  • The taxpayer must be fully tax compliant. That is to say, returns across tax types must have been filed and tax debts paid, or arrangements made with SARS regarding any outstanding tax debts. It is important for you to ensure you are compliant for registration, filing and payment of all taxes that you are liable for.
  • An additional requirement for PAYE and ETI, is that employers must have been registered as an employer with SARS by1 March 2020 to be able to qualify for this tax relief.

HOW TO APPLY FOR THE SARS - EMPLOYERS’ TAX INCENTIVE:   

www.treasury.gov.za | www.sars.gov.za

DOCUMENTATION TO BE PROVIDED FOR THE SARS - EMPLOYERS’ TAX INCENTIVE:

  • Letter of authority, on an official company letterhead granting permission to an individual specified to lodge a claim on behalf of the company.
  • MOA (completion of the agreement between UIF, Bargaining Council and employer).
  • Prescribed template that will require critical information from the employer.
  • Evidence/payroll as proof of last three months employee(s) salary(ies).
  • Confirmation of bank account details in the form of certified latest bank statement.

ADDITIONAL INFORMATION FOR THE SARS - EMPLOYERS’ TAX INCENTIVE:

0800 00 7277