Covid-19

Good day all

During this crisis, ELO will be assisting all small businesses on a pro bono basis to obtain the necessary government benefits and provide guidance on all correspondence coming from the government relating to small to medium-size enterprises. Please like our FB page and keep reading all our posts on our page for your assistance. Your professional ELO Consulting team.

We are doing extensive validation checks to confirm the validity of information prior to me sending this on this forum. I’m using information either directly from the government or legitimate And credible websites eg SAIPA and NEASA. Should you be concerned, please feel free to contact me.

UPDATE - Extension of the Covid-19 TERS Benefit

Following the extension of the National State of Disaster until 15 August 2020, the Department of Labour and Employment has taken the decision to extend the TERS benefit until 15 August. In this regard, the existing benefit structure and criteria remain in effect. This means that TERS benefits can only be claimed for those employees who have not yet returned to work as a consequence of the National State of Disaster, those who have lost income due to reduced working hours, or in respect of those who have lost income as a consequence of needing to isolate or quarantine themselves as a consequence of coming into contact with the virus.

Lastly, the Minister confirmed that all applications for TERS benefits or the months of April, May and June will close at the end of July 2020 and that all valid claims received in respect of these months will be processed accordingly.

Tito Mboweni's Revised Budget Speech - in full

1. INTRODUCTION

Madam Speaker, We are in the midst of a fast‐evolving pandemic. In South Africa and around the world, we have made the decision to protect each other. We have quickly adapted.

We all now wear masks. We wash our hands more often. We maintain a safe social distance. As a result, millions have stayed safe. We remain deeply concerned about the path of the virus. But, in common with several other countries that adopted a stringent, early lockdown, we have “flattened the curve” and saved lives.
As the wise farmer will tell you, when the tempest is raging you must protect your plants from damage. Our Aloe Ferox, like our people, is protected. Mr President, you are the wise farmer, caring for this Aloe Ferox. The storm is not over. But, if we follow the health guidelines and make the right decisions to prepare for a new global reality then, soon enough, the days will grow calmer and our national Aloe Ferox shall go into the new day healthy and strong. Liduma lidlule!

The storm shall pass!

1.1. THE PURPOSE OF THE SUPPLEMENTARY BUDGET

Honourable members, The Public Finance Management Act, read together with the Money Bills Amendment Procedure and Related Matters Act, empowers me, as the Minister of Finance, to table an adjustments budget when necessary. The historic nature of this pandemic and the economic downturn has made it necessary to table such an adjustment.

We will table a second adjustments budget in October together with the Medium‐Term Budget Policy Statement. This Budget does two things. First, it brings an Adjustments Appropriation Bill and a Division of Revenue Amendment Bill to the House. It also formalises the two tax bills to give effect to our response. These Bills ask Parliament to approve the response package for Covi‐19.

Second, Mr President, it lays a path for the direction you gave us on 21 April to: “not merely return our economy to where it was before the coronavirus, but to forge a new economy in anew global reality”

This Supplementary Budget sets out a roadmap to stabilise debt, by improving our spending patterns, and creating a foundation for economic revival. Most of our energies and resources have been focused on the Covid‐19 pandemic. We have quickly adopted temporary countercyclical fiscal and monetary policy measures. After the storm ends, we must work just as quickly to emerge with a sustainable fiscus.

We have many strengths. These include our young and ambitious people; Our institutions, a robust and vibrant democracy, independent judiciary and our commitment to social justice progress; and our economic strengths: a diverse industrial base, a flexible exchange rate, stable inflation, and deep domestic capital markets that allow us to borrow mainly in rand.

But debt is our weakness. We have accumulated far too much debt; this downturn will add more. This year, out of every rand that we pay in tax, 21 cents goes to paying the interest on our past debts. This indebtedness condemns us to ever higher interest rates. If we reduce debt, we will reduce interest rates for everyone and we will unleash investment and growth.

So today, with an eye on the future, we set out a strategy to build a bridge to recovery. Our Herculean task is to close the mouth of the Hippopotamus!
It is eating our children’s inheritance. We need to stop it now!

Our Herculean task is to stabilise debt.

 

2. IN‐YEAR ADJUSTMENTS

2.1. THE ECONOMIC OUTLOOK

Let me begin by outlining our updated fiscal and economic forecasts for the current fiscal year. Covid‐19 has turned the global economy upside down. In the February Budget, we expected that the global economy would expand by 3.3% in 2020. We now expect a global contraction of 5.2% this year.
This will bring about the broadest collapse in per capita incomes since 1870. Throughout the world, tens of millions of workers have lost their jobs. South African unemployment increased by one percentage point, reaching 30.1% in the first three months of this year.
The South African economy is now expected to contract by 7.2% in 2020. This is the largest contraction in nearly 90 years. Inflation will likely register 3% in 2020, in line with the outcome of this morning. Commodity price increases and a weaker oil price have softened the blow, but as a small open economy reliant on exports we have been hit hard by both the collapse in global demand and the restrictions to economic activity.

2.2. FISCAL, MONETARY AND OTHER MEASURES

South Africa has responded to this economic shock with an unprecedented set of measures. Never before has government worked together so closely with the private sector, labour, community and the central bank. Standing as a united people, it is clear we can achieve anything. Government’s Covid‐19 economic support package directs R500bn straight at the problem.
This is one of the largest economic response packages in the developing world. The South African Reserve Bank has reduced interest rates and made it easier for banks to lend money. The SARB has also supported liquidity in the domestic bond market. The Bank has stated that it stands ready to take additional action, should the need arise. More than 2-million customers have received around R30bn in relief from their commercial banks. Insurers and medical aid schemes have provided premium holidays. Landlords have provided rental relief. All in 100 days. This is indeed a remarkable achievement.

2.2.1. REVISED FISCAL FRAMEWORK FOR 2020/21

Turning to the emerging fiscal framework for 2021/22. Honourable members, projected total consolidated budget spending, including debt service costs, will exceed R2-trillion for the first time ever. Gross tax revenue collected during the first two months of 2020/21 was R142bn, compared to our initial forecast for the same period of R177.3bn.

Put another way – we are already R35.3bn behind on our 2020/21 target. As a consequence, gross tax revenue for the 2020/21 fiscal year is revised down from R1.43-trillion to R1.12 trillion.That means that we expect to miss our tax target for this year by over R300bn.

Part of this revision is because the measures announced earlier this year give taxpayers outright relief of R26bn and delays in tax collection of approximately R44bn. These proposals are contained in the Disaster Management Tax Relief Bill and the Disaster Management Tax Relief Administration Bill that I table today.
Taken together the measures and adjustments we present translate into a consolidated budget deficit of R761.7 billion, or 15.7 per cent of GDP in 2020/21. This is compared to the deficit of R370.5bn, or 6.8% of GDP projected in February. This increase is mainly due to the revised revenue projections and pay‐outs from the Unemployment Insurance Fund.

The narrower measure, known as the main budget deficit, is projected to be 14.6% of GDP. Our early projection is that gross national debt will be close to R4-trillion, or 81.8% of GDP by the end of this fiscal year. This is compared to an estimate of R3.56-trillion or 65.6% of GDP projected in February.

Without external support, these borrowings will almost entirely consume all of our annual domestic saving, leaving no scope for investment or borrowing by anyone else. For this reason, we need to access new sources of funding.

Government intends to borrow about $7bn from international finance institutions to support the pandemic response. We must make no mistake, these are still borrowings. They are not a source of revenue. They must be paid back.

2.2.2. HEALTH AND FRONTLINE SERVICES

The Supplementary Budget proposes R21.5bn for Covid‐19‐related health care spending. It also proposes a further allocation of R12.6bn to services at the frontline of our response to the pandemic. Allocations have been informed by epidemiological modelling, a national health sector Covid‐19 cost model and our experiences over the past 100 days.
This money partly supports increased screening and testing, allowing us to open up more and more of the economy. We have successfully increased our Covid‐19 bed capacity to above 27,000; identified 400 quarantine sites with a capacity of around 36,000 beds across the country and deployed nearly 50,000 community health care workers to screen millions of South Africans. We have tested over 1.3-million people.

Provinces will add at least R5bn for the education catch‐up plan, social welfare support for communities and provision of quarantine sites by Public Works departments and responses in other sectors.we salute all the brave health care and essential service workers who are leading this fight.

Tariffs have been agreed with private hospitals to supplement public sector capacity. The Solidarity Fund has augmented government’s efforts to procure medical and personal protective equipment.

We thank all those who have made much needed contributions to the Fund. These examples show that working together with the private sector with a common purpose we can getstuff done.We will use these lessons to re‐energise public‐private partnerships.

2.2.4. PROTECTING THE MOST VULNERABLE

Madam Speaker, over 18-million South Africans have received a temporary Covid‐19 grant. The roll out of the short‐term Special Relief of Distress grant will temporarily support those without an income. An additional 1.5-million people have received these already. To support vulnerable households an additional allocation of R25.5bn to the Social Development department is proposed, for a total relief package of R41bn.

All these measures will come to an end in October.We have implemented health and hygiene measures in 7,000 early childhood development centres, and appointed about additional 1,800 social workers.

2.2.4. DRIVING JOB CREATION

The figures from yesterday show that unemployment is our single greatest challenge. The Economic Support Package sets aside R100bn for a multi‐year, comprehensive response to our jobs emergency. The President’s job creation and protection initiative will be rolled out over the medium‐term. It will include are purposed public employment programme and a Presidential Youth Employment Intervention.

In this year, an amount of R6.1bn is already allocated, and a further R19.6bn has been set aside mainly for this purpose.

2.2.5. UNEMPLOYMENT INSURANCE

As of mid‐June, the Unemployment Insurance Fund (UIF) has provided R23 billion in Covid‐19 relief to over 4.7-million workers affected by the pandemic. This has required a huge upgrade and repurposing of the UIF system to deal with the increase in mostly online applications, and to build in protections against fraud. We thank all involved for the upgrade, there were many individuals from the private and NGO sector who volunteered their time to assist the UIF. There are still challenges but we are confident that the team is working tirelessly to iron them out.

2.2.6. CHANGES TO THE DIVISION OF REVENUE

Honourable members, the division of revenue presented in the 2020 Budget is revised as follows: the nationalshare for 2020/21 increases from R758bn to R790bn, the provincial share decreases from R649bn to R645bn and the local government share increases from R133bn to R140bn.

Local government is at the heart of our response to the pandemic. Accordingly, an additional R11bn is allocated to local government through the equitable share. A further R9bn will be reprioritised within allocated conditional grants to fund additional water and sanitation provision and the sanitisation of public transport.

Municipalities will adjust their budgets to take into account the sharp decline in revenue as a result of the pandemic. We urge communities to hold councils accountable for the spending of Covid‐19 funds.National Treasury will also monitor the spending through monthly and quarterly reports.

2.2.7. COVID‐19 LOAN GUARANTEE SCHEME

Madam Speaker, after a slow start, including all the detailed and technical legal preparations, the loan guarantee scheme is expanding rapidly. In its first month, the scheme lent over R10bn. Many more applications are being processed, and lending is expected to rise significantly. Now that we have moved to an advanced Level 3, most of the economy is “open for business”. We must help businesses to get moving!

The loan guarantee scheme also includes a business restart option, for businesses who need support to get up and going after the lockdown. This will apply to all businesses including those with turnover of more than R300m.

We are also finalising amendments to the repayment holiday and turnover limit, and relaxing terms and conditions to support lending.

The South African Reserve Bank and the commercial banks are finalising the revised legal arrangements and will make announcements shortly. Work is also continuing to expand the scheme to non‐banklenders.

 

3. BUILDING A BRIDGE TO THE FUTURE

Madam Speaker, I now turn to the second part of this Supplementary Budget, which is to lay before the House the steps we are taking towards the MTBPS.

3.1. THE PATH FORWARD

The gospel according to the Apostle Matthew, chapter 7 verses 13 and 14, springs to mind: Enter through the narrow gate. For wide is the gate and broad is the road that leads to destruction, and many enter through it. 14. But small is the gate and narrow the road that leads to life, and only a few find it.

We are faced, as a nation with a choice between these two gates. Even as South Africa responds to the current health and economic crisis, a fiscal reckoning looms. The public finances are dangerously overstretched.

The wide gate is a passive country that lets circumstances overwhelm it.
If we remain passive, economic growth will stagnate. Our debt will spiral inexorably upwards and debt‐service costs will crowd out public spending on education and other policy priorities. We already spend as much on debt‐service cost as we do on Health in this financial year. Eventually the gains of the democratic era would be lost. The wide gate opens to a path of bankruptcy. A sovereign debt crisis is when a country can no longer pay back the interest or principal on its borrowings.

We are still some way from that. But if we do not act now, we will shortly get there. The results are devastating. Interest rates sky‐rocket. Spending has to stop. Inflation takes hold and people grow much poorer. This is what happened to Germany in the 1920s, to Argentina and to Zimbabwe in the early 2000s,and to Greece in the past few years.

Argentina had its ships attached. Greek civil servants and pensioners had their salaries and pensions slashed. In short it is doom and despair. We have been there before: in its closing days, the Apartheid government had to declare a debt standstill.We firmly reject this gate!

The narrow gate on the other hand opens to a path of prosperity. Through this gate, we reduce our reliance on borrowing. We feed the hungry. We look after the sick. We educate our people. We build for the future. We spend with wisdom, and we jail those who loot. The narrow gate is an active approach – a nation that takes active steps to rapidly stabilise debt and grow the economy. By doing this we will create jobs, reduce the cost of doing business and build a competitive economy.

3.2. DEBT STABILISATION THROUGH ZERO‐BASED BUDGETING

Cabinet, under the leadership and guidance of the President, has found the narrow gate. Government shall go through it. Government will narrow the deficit and stabilise debt at 87.4 percent of GDP in 2023/24. Cabinet has also adopted a target of a primary surplus by 2023/24. This is about the same time that our Aloe Ferox will flower for the first time. As any farmer will tell you ‐ patience and focus are required!

The Medium Term Expenditure Framework process will be guided by the principles of zero‐based budgeting which will be applied as a series of overlapping evaluation exercises targeted at large programmes. Our current system of Public Expenditure Reviews is a step towards zero‐based budgeting. This means that we will try to reduce all expenditure that we thought we can no longer afford. After all, we are not as rich as we were ten years ago. The upcoming MTEF will pilot this approach. In the review accompanying this budget we set out our initial proposed fiscal path for the period ahead. We need to find spending adjustments of about R230bn over the next two years.

Tax measures of R40 billion over the next 4 years will also be required. The Government will announce details to these tax proposals in the 2021 Budget. Government will also be allocating R3bn to recapitalise the Land Bank.
This Bank holds 29% of South Africa’s agricultural debt. The National Treasury is supporting the Land Bank find a solution to its default and craft a long‐term restructuring plan. Details on this recapitalisation are provided in the Supplementary Budget Review.

3.3. ALIGNING SPENDING TO THE STRUCTURAL REFORM AGENDA

A firm policy basis has been laid by Towards an Economic Strategy for South Africa, which was considered by Cabinet and accepted last year. While some of the measures have been delayed by the virus, we are now ready.Deputy Minister Masondo will coordinate implementation as the head of the Vulindlela office.One of these is to shift away from the electricity supply system that was introduced in 1923, when George V, the Queen’s grandfather, was the King of what was known as the Union of South Africa. The last few years have shown the inefficiency of this archaic system. Provisional allocations to Eskom were made on the understanding that Government’s Electricity Roadmap would be implemented.

2 Progress is slow. The principle of zero‐based budgeting is that we must see demonstrable value for money: Eskom will need to show progress in meeting the milestone sas laid down in the Roadmap.
This is non‐negotiable. Progress on the other reforms will be given in the MTBPS.

3.4. FAIR AND FISCALLY SUSTAINABLE PUBLIC SECTOR COMPENSATION

This year nearly half of all consolidated revenue will go towards the compensation of workers in the public. We value the important work public servants do. Minister Senzo Mchunu is negotiating with our partners in the labour movement to find a balanced solution that sets compensation at an appropriate, affordable and fair level.We wish him well.

3.5. PUTTING INFRASTRUCTURE AT THE CENTRE OF GROWTH

Finally, Honourable members, building a bridge to a post‐lockdown future will require that we build high‐quality physical bridges, roads, railways, ports and other infrastructures. Infrastructure will be the fly wheel by which we grow the economy. Just as we have toiled together to manage the pandemic, let us harness this same unity of purpose and build the infrastructure our nation needs.

Our efforts to reduce consumption expenditure will also change the composition of spending in the direction of investment.Yesterday, the Presidency hosted a successful Sustainable Infrastructure Development Symposium, drawing in sector specialists, technical and financial structuring experts and policy departments that have considered 177 infrastructure projects across public and private sectors.

In light of these and other important initiatives, the Government has already committed R100bn over ten years toward the Infrastructure Fund. Together with the Development Bank of Southern Africa, we have identified projects that will be funded through the Budget Facility for Infrastructure.

We have recently released a paper on Sustainable Finance, and we are working closely with the private sector to green our economy. But our enormous investment needs cannot be delivered by government alone. The private sector accounts for most of the investment spending in the economy. We must reduce long‐term interest rates to allow business and households to drive faster economic growth.

 

4. CONCLUSION

This is my presentation to the House and to South Africa, an extraordinary Supplementary Budget that saves lives,protects livelihoods and actively builds a bridge to a prosperous future. Madam Speaker, the Gospel tells us: Small is the gate and narrow the road that leads to life, and only a few find it.Let me pay tribute to the South Africans who through their actions have protected the health and lives of their fellow citizens. They show resolve to go through the narrow road. Their government is ready to follow their lead.

To quote the President, in his letter to the nation on Monday:Let us put shoulder to the wheel and turn this adversity into opportunity.Let us reimagine and repurpose our economy and put it firmly on a solid and sustainable path.

In conclusion, Mr President and Deputy President, thank you for your leadership.
Thank you to the deputy minister of finance, the national treasury director general and his team for their insightful contributions! My thanks to the commissioner of the South African Revenue Service, to the Governor of the South African Reserve Bank, to colleagues in the Cabinet, in the Ministers Committee on the Budget and all the MECs that we have worked so closely with. My gratitude for the Parliamentary Committees who work tirelessly to process the legislation accompanying the Speech.

Fellow South Africans, Matthew chapter 7 closes as follows: “Everyone who hears these words of mine and puts them into practice is like a wise person who built their house on the rock. 25 The rain came down, the streams rose, and the winds blew and beat against that house; yet it did not fall, because it had its foundation on the rock.Let us listen, let us practice and let us build! I thank you.

weFEEDsa is the outcome of the collaborative effort of two organisations Feed the Poor, founded by Mr Ebrahim Khan in 2018 and Feeding KZN, established by Mr Bashier Rashid and AK Ebrahim both of whom have years of experience in community feeding. Bashier and AK have selflessly provided the premises out of which we currently operate.

SMME Gameplan Webinar - Part 5

GROWTH IS IN THE PRUNING — the topic of our 5th SMME Gameplan Webinar, and what seems to be the underlying theme of our lives at the moment. We will be walking through legal ways SMMEs can reduce their liability and hear of a global organisation’s pursuit of sustainability during COVID-19.

Good day all, it appears that CIPC has removed all COVID 19 documentation according to biz portal. I recommend you all still ensure your form 2 is still available if you are stopped on the way to work. According to level 3 regulations most business are allowed to operate with the exception of a few within tourism and entertainment. Should there be any changes, I will advise accordingly.

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We are currently receiving enquires about May submissions for TERS UIF. The Portal for May has not been opened as yet. If a client has submitted a claim for April, they are unable to do a submission for May as it states that the Employee ID number already exists, due to the fact that the portal only has a lock down period set for the 27th March -30th April. Submissions for May will only be able to be made once this Portal has been updated.

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A common mistake we finding is that clients have claimed and been paid TERS for their employees and have paid PAYE to SARS based on this amount received. Kindly note that TERS is non taxable income and employees should NOT pay PAYE on these amounts.

PAYE tax relief period

The COVID-19 Tax Relief for PAYE is available for the four-month period

Twelve lessons during lockdown

There are certain conditions that we consider ideal in order for us to function effectively as leaders, whether we are talking of leading groups or self-leadership.

Covid-19 Checklist

The following COVID19-ready checklist will ensure statutory compliance with required policies and plans:

Implementation of relevant health and safety measures in the workplace amidst COVID-19

Minutes of the meeting between management and the employees

Lockdown Bozza

A great app that will tell you what is allowed and open on each level. If you tap on a picture it will explain the actual rules. Remember to set the right province

Covid-19 - National Lockdown Alert Level 4

Durban Cluster Recommendation

Winning in the Age of Disruption

Disruption is an inescapable and growing challenge for all industries in South Africa…

Good morning all, I’ve just confirmed that the COVID 19 distress fund of the R200bn from Government is available through all the major banks. Please contact your account manager URGENTLY to access this application. It appears that this application became available on 28 April 2020.

NB: All funds are by way of a loan with favorable repayment terms eg. 6 month deferment and interest rate of prime. There is NO free money provided in the way of grants!!!

Small business relief

If you’re planning to apply for relief funding, there are a number of requirements that need to be fulfilled before you can register your business on smmesa.gov.za. These include the following:

Your company must have been registered with the CIPC (Companies and Intellectual Property Commission) before 28 February 2020.
Your company must be 100% owned by South African citizens.
70% of the company’s employees must be South African citizens.
Your company must be fully compliant and registered with SARS and UIF.
Please note: priority will be given to businesses owned by women, the youth and disabled people.

If you meet these criteria, the next step is to register on the national SMME database: smmesa.gov.za. Here you will need to complete the online application and submit the following information:

Proof that the business is negatively affected by COVID-19.
The following documents need to be uploaded:
Company statutory documents
FICA documents (e.g. municipal account and letter of authority)
Certified IDs of directors
Three months’ worth of bank statements
Latest annual financial statements
Business profile
Six months’ worth of cash-flow projections (where applicable)
Proof of ownership of property or copy of lease agreement
Proof of details of employees registered with UIF, including their bank details
Provide a detailed breakdown of funds required, including salaries, rent, expenses, and so on.

Nedbank and Department of Small Business partner to assist spaza shops and general dealers

Nedbank has partnered with the Department of Small Business Development to help spaza shops and general dealers to access support…

5.5 years to pay and banks risk only 6%: How SA’s R200bn Covid-19 loan scheme will work

In the coming weeks small businesses – and ones with an annual turnover of up to R300 million – will be able to start applying for special government-backed Covid-19 loans from South Africa’s commercial banks…

Good day all, kindly be advised that all the major banks will be ready to accept applications on 28 April 2020. Please start working on getting your required documentation together.

Nedbank: The Covid-19 Loan Scheme for Small and Medium Enterprises was announced by the President on 21 April 2020. We will be ready to receive applications from Tuesday, 28 April. For details of the scheme, qualifying criteria and documents required. To apply, please contact your Business Manager. Only complete applications will be considered.

The 'new normal': SA likely heading for 'partial lockdown', says Winde

South Africa is headed for a “partial lockdown”, says Western Cape Premier Alan Winde, as the next likely phase after the current super-strict stay-at-home order…

Harvard University courses for free

Harvard University is offering 67 courses for free during this unfortunate pandemic.

Should you wish to have a Harvard University qualification on your CV, this is probably your chance to do so.

3 Ways To Lead Through The Coronavirus Crisis

This view is consistent with the work of Drew Povey. He’s a leading authority on leadership who’s devised a new framework to help executives navigate through the current crisis and communicate simply with their teams…

New certificate needed to perform essential services

Hi All, important information has been noted. All entities that were classified as essential services will have to reapply for the CIPC Permits as the original permits were for the original lockdown period. Please ensure you comply with immediate effect to prevent any issues with the police enforcement. Kind regards, ELO Team

SMME GAME PLAN

From surviving to thriving..

Part One

SMME GAME PLAN

From surviving to thriving..

Part Two

COVID-19 Redfern and Findlay

News Blast 31 March 2020

COVID-19 Redfern and Findlay

News Blast 3 April 2020

SARS TV

Dear Employer, watch our video on how the tax relief for employees’ tax, ETI and provisional tax works. Go to www.youtube.com/user/sarstax/videos. Regards, SARS

FREQUENTLY ASKED QUESTIONS

Must a business be in complete shutdown in order to claim? Can you apply for temporary workers laid-off during lockdown? Can non-South Africans receive UIF benefits? Are benefits only available to employees receiving no payment?…

TERS FINAL REGULATIONS

The new regulations

COVID-19 Relief Guidelines

The purpose of this document is to provide an overview of relief available,  Government Relief Funds and Private Sector funding, the process and qualifying criteria for SMMEs and industries impacted by the COVID-19 pandemic.

Tax measures to combat the Covid-19 pandemic: as proposed by the Minister of Finance

The Minister of Finance has supplied comprehensivedetailsto the tax measures as announced by the President of RSA on 23 March 2020 in his speech on themeasures to be undertaken to combat the effects of COVID-19.

Ruperts R1 billion: Applications will become available online today.

Good morning all, Kindly note that Business partners will be administering the Ruperts R1 billion, for which applications will become available online today. Please note that grants of R25k will be given to sole proprietors where you are not required to repay. Funds of up to R1m will be granted to companies and close corporations subject to terms and conditions. The repayment terms and interest rates are to be advised on the www.businesspartners.co.za website.

NB: All applications are required to submit the following documents:

• Signed Annual Financial Statements ended 28 February 2019 and Management accounts upto 31 December 2019.
• Latest EMP201 documents submitted to SARS with supporting schedules reflecting salaries with deductions.
• Rental statement not older than 3 months (if applicable).
• Any other credit agreements
• A motivation and supporting documents illustrating the financial distress suffered by your business as a result of COVID-19.
• Statement of assets and liabilities
• Copy of ID’s / Marriage Certificate (if applicable) / Company Documents.
• Confirmation of bank account details (electronic stamped copy accepted)

Rupert’s R1bn donation: SMEs may apply for funding of up to R1m

Small and medium enterprises (SMEs) may apply for R250 000 to R1 million in funding from the R1-billion donation the Rupert family made to assist businesses in financial distress as a result of Covid-19.

Nicky and Jonathan Oppenheimer's South African Future Trust (SAFT)

The South African Future Trust (SAFT), established by Nicky and Jonathan Oppenheimer, will make funds available to South African businesses impacted by the coronavirus from 3 April 2020.

Nedbank said that it will help facilitate the distribution of loans to small businesses on behalf of SAFT.

Business Growth/Resilience Facilities

Businesses geared to take advantage of supply opportunities resulting from the Coronavirus pandemic or shortage of goods in the local market.

COVID-19 SMME Emergency Funding Package

Please note that government has removed the requirement regarding 51% black ownership but have commented that there will be preference towards women and disabled owned businesses.

Covid-19 Employer/Employee Relief Scheme implemented by Department of Employment and Labour

Note: This is additional relief for employers who have employed staff over an above the debt relief finance scheme.

For the next 4 months SARS is allowing all entities to short pay 20% of your PAYE without SARS inflicting any penalties and interest. SARS is also allowing non payment of any provisional tax in the next 6 months without them inflicting any penalties and interest. However this will only be applicable to entities that are currently tax compliant. Secondly as mentioned earlier it is NOT a reduction of payment but a delay for both PAYE and Provisional tax.

In terms of tax relief measures by government, please note it is a delay in the payment of employees tax and provisional tax and NOT a reduction of tax.

Another disclaimer is that the entities turnover must be less than R50m per annum.

NEASA COVID-19 LEAVE OPTIONS

COVID-19 AND LEAVE DEPARTMENT OF LABOUR IS CAUSING CONFUSION

Dear employer

Much confusion has been caused by some remarks, made by officials of the Department of Employment and Labour, surrounding the question of whether employers may require employees to take their annual leave during the national lockdown.

South Africa’s sources of law are the common law, acts of parliament, secondary legislation and case law. Speeches, press releases and statements do not create laws.

Section 20(10) of the Basic Conditions of Employment Act (BCEA) states that:
Annual leave must be taken:
(a) in accordance with an agreement between the employer and employee; or
(b) if there is no agreement in terms of paragraph (a), at a time determined by the employer in accordance with this section.

Therefore, annual leave must be taken by agreement between the employer and employee, and failing such an agreement, at the employer’s discretion. The current Covid-19 lockdown is no different to an annual shutdown in December.

Therefore, until one of the legitimate sources of law is amended, employers can require their employees to take their annual leave now, during this lockdown, and be paid.

Employers who have an annual shutdown in December may even, if practical, exchange this lockdown closure for the December shutdown and require employees to work during December.

The other alternative available to employers, who cannot place employees on leave or continue paying them, is to lay them off temporarily as a result of the lockdown and to claim UIF benefits for the employees in terms of the expanded COVID 19-TERS benefit. Click here to view our newsletter in this regard.

For any assistance call the NEASA Hotline on 086 016 3272 or send an email to legalhotline@neasa.co.za

Our Philosophy

T

Teamwork

Partnering with the respective client in taking their business to the next level;

A

ACCOUNTABILITY

Assisting business’ in being accountable to the local regulatory authorities and society in general by building a sustainable business;

P

PROFESSIONALISM

Assisting business’ to operate in a professional environment; and

E

EXCELLENCE

Consistently viewing business’ for opportunities of continuous improvement.

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