The National Treasury in South Africa on 29 March 2020 issued “explanatory notes” on certain tax legislative measures in response to the coronavirus (COVID-19) pandemic.
The explanatory notes are with regard to two bills to be tabled when Parliament re-convenes later this year, and are intended to be effective retroactively. The bills are (1) the Disaster Management Tax Relief Bill and (2) the Disaster Management Tax Relief Administration Bill. The draft bills alongside their draft explanatory memoranda, will be published for public comment by 1 April 2020.
In general, among the measures in the bills are incentives for employers to employ young persons (between 18-29 years of age) in terms of a cost-sharing arrangement with government, by allowing the employer to reduce the amount of PAYE it is required to pay by the amount of the tax incentive.
Read a March 2020 report [PDF 367 KB] prepared by the KPMG member firm in South Africa
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