Actions taken by businesses in response to the coronavirus (COVID-19) can result in additional expenses—for which companies need to note possible tax considerations.
For instance, COVID-19 can have implications on employment and the ability to claim a tax deduction in respect of “retrenchment costs” (redundancies) depends on a number of factors, such as:
There are also tax considerations for employers that provide employees with paid leave, concerning whether items of expenditure relating to overhead costs are capital in nature, and for taxpayers that invest in technology that may warrant a shorter write-off period.
Read a March 2020 report [PDF 364 KB] prepared by the KPMG member firm in South Africa
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.