SARS DEFERRED TAX PAYMENTS

The South African Revenue Service (SARS) is deferring tax payments without penalties. COVID-19’S devastating impact to small business in the country is yet to be seen, with many government institution trying to make sense and to find ways to bring some sort of relief for SMES and ordinary people.

Unfortunately the pandemic’s impact does not absolve small business from their legal obligation, more so when government’s help is dependent on collecting taxes from its people and businesses.

Baker Mckenzie advised that “The aim of deferring tax payments without incurring penalties is to alleviate the cash flow burden of tax compliant businesses during the pandemic economic crisis”

The South African Revenue Service (SARS) has recently published details that outlines a process businesses that are operating in the country could adhere to in arranging for paying what is due to SARS without incurring penalty charges, it will be instalments but no penalties will be incurred.

Virusha shared that “This option applies to both small and larger businesses, as well as multinationals operating in South Africa”

Like everything else T&C’S apply to qualify for the tax relief Taxpayers must prove that they are experiencing financial hardships due to the impact of Covid-1“penalties will only be remitted if taxpayers are able to successfully prove the serious impact of Covid-19 on their business” added Subban