Budget 2021: What It Means to You

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	MAINTAINING SARS REGISTERED DETAILS (RAV01) In terms of the Tax Administration Act 28 of 2011, taxpayers are required to notify SARS within 21 working days any changes relating to their: Physical Address Postal Address Banking particulars used for transactions with SARS Electronic address used for communication with SARS Representative taxpayer Such other details as the Commissioner may require by public notice. SARS has made it easier to maintain your registered details by implementing this function on e-Filing. The functionality allows you to view, edit and maintain demographic information including online registration for VAT and PAYE. Where there is a need to update incorrect ID numbers, kindly note that the taxpayer has to personally go to SARS as Tax Practitioners cannot perform this function on behalf of the taxpayer. SDK will be assisting you with ensuring your details are up to date with SARS, as SARS may charge an administrative penalty for out-of-date records. FOREIGN EMPLOYMENT INCOME EXEMPTION The exemption under section 10(1)(o)(ii) from 1 March 2020 Residents will still be required to observe the 183 and 60 full days requirements in order to qualify for the exemption. Provided the “days” requirements are met, only the first R1.25 million of foreign employment income earned by a tax resident will qualify for exemption with effect from years of assessment commencing on or after 1 March 2020. Any foreign employment income earned over and above R1.25 million will be taxed in South Africa, applying the normal tax tables for that particular year of assessment. Temporary relief in respect of the 2020 and 2021 years of assessment The Taxation Laws Amendment Act, 2020 relaxed the days requirement to qualify for the foreign employment income exemption. In terms of the current provisions, individuals who spent more than 183 days in aggregate and a continuous 60 days working outside South Africa would have qualified for exemption in respect of their remuneration. However, due to travel bans during the COVID 19 pandemic, these individuals could not travel in order to work outside South Africa, and therefore could not qualify for the above-mentioned 183-day requirement. The 183-days in aggregate requirement is reduced to an aggregate of 117 days. An individual is still required to comply with more than 60 consecutive days requirement in the same period that the 117 days have been met. The amendment does not provide permanent relief and only applies to any 12-month period for the years of assessment ending from 29 February 2020 to 28 February 2021. This temporary relief is therefore only applicable to the 2020 and 2021 years of assessment.

March 2021 NEWSLETTER

Budget 2021: What It Means to You

Faced with apprehension, the first Budget Speech of the “new normal’ was generally well-received, with the Rand holding steady, markets reacting positively, and South Africans breathing a collective sigh of short-term relief.

A surprisingly optimistic 2021 Budget provided funding for COVID-19 responses without hiking direct taxes, and previously announced tax increase proposals were withdrawn.

As Finance Minister Tito Mboweni called it, the 2021 Budget fiscal framework is “a sound platform for sustainable growth that creates several reasons for hope”. Find out here what has changed and what it all means for South Africans and small and medium businesses now and in the future.

Budget 2021: Your Tax Tables and Tax Calculator

Individuals and Special Trusts will see some relief from the Budget 2021 proposals, and to help you quantify that, and as a convenient reminder of the various other taxes that remain unchanged, we share both the official SARS Tax Tables and a link to Fin 24’s Budget Calculator (just follow the four-step process to do your own calculation).

The Tax Tables cover Individuals, Special Trusts and Trusts, Companies, Small Business Corporations, Turnover Tax for Micro Businesses and Transfer Duty.

Click on the links below each Table for the full SARS “Budget Tax Guide 2021”.

3 Survival Tips for Your Small Business In 2021: Little Things with A High Impact

Given the past year's pandemic and economic chaos it's relatively safe to call the present a “hostile economic environment”.

Small businesses are struggling across the board as imports are hard to come by, exports near impossible to make, and clients are stripped of their expendable income. In these circumstances it's wise for the small business owner to do everything they can to not only survive in these harsh conditions, but to keep staff on board, and position themselves for better times.

This is a list of three easy things every small business should be doing to maximise profit in 2021.

The Department of Small Business Development’s Lifelines to Suffocating SMMEs

SMMEs have had some unusual hurdles to jump over in order to keep their doors open in recent times.

Some relief from the impact of the COVID-19 pandemic and subsequent lockdowns, which have had such a destructive domino effect on businesses, is available as the government has put in place resources to help small businesses with problems across the board. These resources aim to help correct imbalances across gender lines in directorship, business performance, COVID-19 constraints, business stagnation and other growth stunters.

Here are some of the government resources available to SMMEs to keep them afloat.

New National Minimum Wage and Earnings Thresholds From 1 March 2021

1 March 2021 sees a new National Minimum Wage in place, plus an increase in the “earnings threshold” provided for in the Basic Conditions of Employment Act (BCEA).

Quoting from the Employment and Labour Minister’s formal announcement of the changes, we set out the increases for employees generally, as well as those for each of the main employment sectors (domestic workers, farm workers, contract cleaners, wholesale/retail sector), with notes on the percentage increases in each. For employers of domestic workers we also provide a link to a useful “living wage” calculator.

We also summarise the BCEA protections that will no longer be available to those newly earning above the adjusted earnings threshold.

Your Tax Deadlines for March 2021

5 March – Monthly PAYE submissions and payments
25 March - VAT manual submissions and payments
30 March - Excise Duty payments
31 March - VAT electronic submissions and payments
31 March – Corporate Income Tax Provisional Tax payments where applicable.

Disclaimer

The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for professional, detailed and appropriate advice.

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