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
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in 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.