TEL: 011 475 8888
FAX: 086 609 1613

Covid-19

HELPFUL INFORMATION.

Please take note we are fully operational at CVW, should you need assistance please don’t hesitate, we are here for you.

Relief 1: Register on smmesa.gov.za

The Department of Small Business Development has made funds available to small businesses:

1.A turnover of less than R50m per annum

2. Must be 100% South African owned

3. Workforce must be made up of 70% of South African citizens.

Qualifying small businesses can apply to the relief fund, but you will be required to show the impact that COVID-19 has had on your business. You can register your business at smmesa.gov.za.

Relief 2: Temporary Employer-Employee Relief Scheme (COVID-19 TERS)

The COVID-19 Temporary Employer-Employee Relief Scheme (COVID-19 TERS) was put in place to help employers whose had to close their doors and ceased trading and can’t pay the full salaries of their staff they send home due to the lock down. These employers can then apply for funds to pay salaries on their behalf for a period of 3 months, or the duration of lock down. Please take not of the various requirements that you will need to comply with to qualify for this. For more information
visit this link.

Relief 3: SARS PAYE Deferral

SARS has granted a four month payment deferral of 20% on their PAYE liability. However, this is merely a deferral of PAYE payments between 1 April 2020 and 31 July 2020 and the deferred PAYE liability must be paid to SARS in equal installments over the six months period from August 2020. Your first payment will be due on the 7th of September 2020.  Only businesses that are tax compliant can make use of this deferral.

Relief 4: SARS Provisional Tax Deferral

SARS has granted Small businesses a 12 month proportionate payment deferral on provisional tax.  This deferral commences on 1 April 2020 and goes up to 31 March 2021. The first provisional tax payment due from 1 April 2020 to 30 September 2020 will be based on 15% of the estimated total tax liability, while the second provisional tax payment from 1 April 2020 to 31 March 2021 will be based on 65%b of the estimated total tax liability.  Provisional taxpayers with deferred payments will be required to pay the full tax liability when making the third provisional tax payment in order to avoid interest charges. Only businesses that are tax compliant can make use of this deferral.

Relief 5: Employee Illness Compensation

Should any of your employees contract COVID-19 while at work, their medical expenses can be claimed from the Compensation for Occupational Injury and Disease. For more info, visit this
link.

Relief 6: Employment Tax Incentive (ETI)

In order to minimise the loss of jobs during this Covid-19 period, Government proposed the expansion the ETI programme for four months (1 April 2020 to 31 July 2020) and works as follows:

  • Increasing the maximum amount of ETI claimable during this four month period for employees eligible under the current ETI Act from R1 000 to R1 500 in the first qualifying twelve months and from R500 to R1 000 in the second twelve qualifying months.

     

  • Allowing a monthly ETI claim in the amount of R500 during this four month period for employees from the ages of:
     
    • 18 to 29 who are no longer eligible for the ETI as the employer has claimed ETI in respect of those employees for 24 months
    • and 30 to 65 who are not eligible for the ETI due to their age.
  • All of the above will run through your payroll so please speak to your accountant for more information.

Guide to UIF and other Covid-19 options

For access to the updated documents, forms and other relevant information referred to above, please CLICK HERE .

COVID19 GUARANTEED LOAN SCHEME FOR SMALL AND MEDIUM ENTERPRISES

As announced by the President, National Treasury, the South African Reserve Bank and commercial banks have jointly created a guaranteed loan scheme. The purpose of this scheme is to help small and mediumsized businesses and the economy.In terms of this scheme, R200 billion will be ultimately made available for new loans to existing customers. The initial phase will be R100 billion.
 
The key features of the Covid19 loan guarantee scheme are:
1. Covid19 loans will be available from banks to eligible businesses in good standing with their commercial banks with an annual turnover of less than R300 million.
2. Funds borrowed through this scheme can be used for operational expenses such as salaries, rent and lease agreements, contracts with suppliers, etc. Loans will cover up to three months of operational costs and will be drawn down monthly.
3. Banks are not obliged to extend Covid19 loans, and those that do will use their normal riskevaluation and creditapplication processes. A business’ owners may be required to sign surety for the loan.
4. Each business may accept only one Covid19 loan.
5. Covid19 loans will be offered at a single, agreed lending rate by all banks participating in the scheme. The rate will track the repo rate.
6. A sixmonth repayment holiday will commence from the first drawdown, although interest will accumulate from the date on which the first drawdown on the loan occurs.
7. Repayment of interest and capital starts after six months and businesses have a maximum of 60 months to do so. Borrowers can repay the loan ahead of schedule.
8. The scheme will be rolled out by banks over the next few weeks.
 
The scheme works on the principle that profits and losses are ultimately shared between government and the banks. The scheme will receive all ‘profits’ on the loans, i.e. the difference between the rate at which banks lend the money (together with limited costs). This will include a guarantee fee charged to the banks in relation to the scheme. These profits will be used to offset any losses that the scheme makes. If the scheme suffers any further losses, these will be absorbed by the banks themselves, capped at 6 per cent of the size of the loan. Any further losses will ultimately be covered by the fiscus. Please contact your bank for further details and eligibility criteria. Please see links below:

ADDRESS

Panorama Office Estate,
Unit9 2nd Floor,
Kudu Street,
Allens Nek,
Roodepoort.

PHONE & FAX

TEL: 011 475 8888

FAX: 086 609 1613