You are currently viewing our desktop site, do you want to download our app instead?
Moneyweb Android App Moneyweb iOS App Moneyweb Mobile Web App
Join our mailing list to receive top business news every weekday morning.

Treasury announces tax relief for SA businesses hit by coronavirus

Four-month financial cushion.
Companies with revenue of R50m or less may also delay paying 20% of their employee tax liabilities for four months. Image: Moneyweb

South Africa’s National Treasury said on Sunday it was introducing a new tax subsidy of R500 per month for each worker to employers for the next four months to cushion financial losses suffered by firms due to the coronavirus.

In a statement, the treasury said it would also permit businesses with revenue of R50 million or less to delay paying 20% of their employees’ tax liabilities over the next four months.

“The tax adjustments are made in light of the National State of Disaster and due to the significant and potentially lasting negative impacts on the economy from the spreading of the Covid-19 virus,” the treasury said in a statement.

South Africa entered a 21-day lockdown on Friday with people restricted to their homes and most businesses shuttered. The country has reported over 1 180 cases of coronavirus and now faces a near certain deep recession.

The announcement also follows Friday’s decision by Moody’s to cut the country’s debt to subinvestment, meaning all three of the top ratings firms now rank the country at junk.

Earlier, Finance Minister Tito Mboweni told the Sunday Times newspaper South Africa would consider approaching the International Monetary Fund and World Bank for funding to fight the coronavirus.

COMMENTS   0

You must be signed in to comment.

SIGN IN SIGN UP

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR

Podcasts

NEWSLETTERS WEB APP SHOP PORTFOLIO TOOL TRENDING CPD HUB

Follow us:

Search Articles:Advanced Search
Click a Company: