COVID 19 TAX RELIEF – PAYE

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On 21st April 2020 President Ramaphosa announced additional measures to assist employers to provide financial stability to their employees. One of these measures includes a 35% deferral on the monthly PAYE liability owed to SARS for the months of April, May, June and July. In addition, SARS will not impose any penalty or interest on the deferred PAYE liability amount. This means that employers are still liable to pay the remaining 65% as per normal. 

Employers making use of this tax relief must pay back the total deferred PAYE liability amount in six equal instalments. These instalments must be paid as follows:

  • August 2020 – payment due by 7 September 2020;
  • September 2020 – payment due by 7 October 2020;
  • October 2020 – payment is due by 6 November 2020 (last business day before the 7th);
  • November 2020 – payment is due by 7 December 2020;
  • December 2020 – payment is due by 7 January 2021;
  • January 2021 – payment is due by 5 February 2021;

If an Employer defaults on the payment of the instalment, penalty and interest will be imposed for the month defaulted.

https://www.sars.gov.za/TaxTypes/PAYE/Pages/FAQs%20Employers—Tax-Relief.aspx