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SARS issues PAYE tax relief guidelines for SMMEs

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SARS has issued relevant information for all SMMEs looking to benefit from the announced PAYE tax relief period, as well as instructions to adhere to in order to successfully qualify.

The South African Revenue Service (SARS) informed that the pay-as-you-earn (PAYE) tax relief period has been made available to qualifying businesses for the three-month period from August to October. SARS published all relevant information on Thursday, 19 August 2021, related to the emergency tax relief measures applicable to small, medium and micro enterprises (SMME) and others.

SARS confirmed that tax compliant businesses with a gross income of up to R100 million will be allowed to delay 35 percent of their PAYE liabilities over the next three months without penalties or interest. The first deferment will be available to claim in EMP201 returns for August, and is due by Tuesday, 7 September 2021.

In order to claim relief for PAYE, businesses are required to complete their EMP201 forms with the full PAYE liability, as the form will calculate the PAYE payable at 100 percent. This is to be followed by calculating the total payable as 65 percent of the PAYE liability, plus the skills development levy, plus the Unemployment Insurance Fund payable. SARS will then issue a statement of account reflecting the tax relief for PAYE, and the total amount payable. Late payments will result in a forfeiting of relief benefits.

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Mahlohonolo Lakaje
[email protected]

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