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South Africa: Employment tax incentive, 10-year extension

South Africa: Employment tax incentive, 10-year extensi

Changes to South Africa’s employment tax incentive regime include an extension for 10 years.

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The incentive has been extended to 29 February 2029.

Other measures reflect that effective 1 August 2018, employers can claim the employment tax incentive with respect to special economic zone (SEZ) qualifying employees. This reflects an expansion of the incentive program, a “youth employment incentive.”

Beginning 1 January 2019, the new national minimum wage requires employers to remunerate employees at a minimum of R20 per hour. Effective 1 March 2019, employers will be able to claim the maximum value of R1,000 per month for employees earning up to R4,500 monthly (previously R4,000), with the incentive tapering to zero at the maximum monthly income of R6,500. The value of the incentive is halved during the second 12-month period when an employer claims the tax incentive in respect of a specific employee.
 

Read a March 2019 report [PDF 116 KB] prepared by the KPMG member firm in South Africa

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