It is a worrying time for all, but the South African Government is doing it’s best to help all especially businesses. We spoke to Riaan Viljoen of Viljoen Attorneys as he gave some insight into the recent updates for medium Enterprises during COVID-19.
- The President has announced a relief fund along with other measures to assist primarily small businesses that are likely to suffer most during the COVID-19 pandemic.
- For the company to receive such relief the following conditions apply:
- The business must be 100% owned by a South African citizen.
- The company must be able to prove that 70% of the employees are South African citizens.
- The company must provide evidence that it is tax compliant.
- The company has to be registered with CIPC by 28 February 2020.
- Priority will be given to businesses owned by women, youth and people employed with disabilities.
- Applicants must demonstrate a direct link of impact or potential link of the impact of Covid-19 on its business.
- The government has given businesses with a turnover of less than Fifty Million Rand a four month holiday on certain types of tax.
- Applications can be made via https://smmesa.gov.za
- Businesses can also delay 20% of their tax based on ‘pay as you earn’. These businesses can also delay paying a portion of their provisional and tax income for six months without penalties
- The Companies and Intellectual Property Commission issued a practice note, which indicates that the Commission has elected to not invoke its powers where a company is temporarily insolvent and still continuing business, taking into consideration the COVID-19 pandemic.
- Most of the major banks are offering some form of support
- Standard Bank, from 1 April 2020 will support SMEs with a payment holiday for 90 days- restructuring payments for the repayment to come into effect after the 90- day period. From 1 April 2020, ABSA bank’s corporate and business clients will be offered solutions based on their unique requirements and operations
- From 1 April to 30 June 2020 FNB will provide relief to individual and business.
- FNB customers who financial stability has been impacted by the COVID-19 pandemic.
- The link that briefly outlines the process and necessary required documents can be found here: https://www.gov.za/sites/default/files/gcis_documents/SMME%20Debt%20Relief%20Scheme.pdf
Temporary Relief Update
- The Minister of Labour and Employment has stated that the special disaster benefit will be paid by the Unemployed Insurance Fund, but has cautioned that because the UIF does not have the capacity to address individual claims simultaneously, therefore all benefits will be paid by companies and bargaining councils directly.
- It should be noted that all government money paid to companies and bargaining council’s will be audited.
For more information or guidance from the team at Viljoen Attorneys, contact: email@example.com