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Disaster Management Tax Relief Acts Signed

November 6, 2020

The Presidency

President Ramaphosa has signed the Disaster Management Tax Relief Act.

The Disaster Management Tax Relief Bill was passed by parliament in September 2020 and sent to the president for assent.

The national assembly passed the bill and sent it to the national council of provinces for concurrence at the end of August 2020.

The standing committee on finance, during deliberations, amended the bill by extending by two months, the relief provided for in Clauses 7,8 and 9 of the bill.

The bill was tabled in June 2020 as part of the 2020 Supplementary Budget.

The Disaster Management Tax Relief Act seeks to:

• amend the Employment Tax Incentive Act, 2013, so as to amend certain provisions to provide for tax relief in respect of the COVID-19 pandemic;
• make new provision for the tax treatment of certain organisations for disaster relief in respect of the COVID-19 pandemic and of donations to such organisations;
• provide for a temporary exemption from liability to pay skills development levies under the Skills Development Levies Act, 1999; and
• provide for matters connected therewith.

The act is now in effect.

The Disaster Management Tax Relief Administration Act has also been assented to.

Parliament passed the Disaster Management Tax Relief Administration Bill in September 2020.

The bill was also tabled in June 2020 as part of the 2020 Supplementary Budget.

During deliberations, the standing committee on finance amended clause 2 on COVID tax relief measures so that repayments would only begin in October 2020 and run through until March 2021.

The Disaster Management Tax Relief Administration Act aims to:

• provide for tax measures in order to assist with alleviating cash flow burdens on tax compliant micro and small to medium sized businesses arising as a result of the COVID-19 pandemic and measures taken under the Disaster Management Act, 2002;
• provide for employees’ tax treatment of donations to the Solidarity Fund;
• provide for a change in the value-added tax category of vendors to effect monthly returns and refunds; and
• provide for matters connected therewith.

The act is deemed to have come into operation on 1 April 2020 except where otherwise provided for in the act, or the context otherwise indicates.