To qualify for the COVID-19 Tax Relief for PAYE, employers, must:
- Be either an:
- Individual;
- Partnership;
- Trust; or
- Company/Close Corporation/Shareblock/Co-operative that conducts trade.
- Have a gross income of R100 million or less during the year of assessment ending on or after 1 April 2020, but before 1 April 2021; AND
- That gross income must not include more than 20% in aggregate of interest, local & foreign dividends, royalties, rental form letting of fixed property and any remuneration received from an employer;
- If the rental of fixed property is the primary trading activity and the rental income is substantially the whole of the gross income (at least 90%), disregard this exclusion test; and
- For purposes of a partnership, use the aggregate partner’s gross income from the partnership; or
- Is a qualifying micro business who meet the requirements set out in the Sixth Schedule.
- That gross income must not include more than 20% in aggregate of interest, local & foreign dividends, royalties, rental form letting of fixed property and any remuneration received from an employer;
- Be fully tax compliant, meaning:
- Is registered for all required taxes;
- Have no outstanding returns for any taxes registered for;
- Have no outstanding debt for any taxes registered for;
- Be registered for PAYE as at 25 March 2020.
DISCLAIMER: The material and information contained in this article is for general information purposes only. You should not rely upon the material or information in this article as the basis for making any business, legal or other decisions.