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Disaster Management Tax Relief Bill Tabled

June 26, 2020

Parliament

The Disaster Management Tax Relief Bill has been tabled in parliament.

The draft bill was first published at the beginning of April 2020 and a revised version was issued on 1 May 2020.

A second revised draft bill was issued later in May.

The bill provides the necessary legislative amendments required to implement the COVID-19 tax measures.

At the end of March, the finance minister, Tito Mboweni, announced tax measures designed to combat the COVID-19 pandemic.

The measures are over and above the tax proposals outlined in the 2020 Budget in February.

The tax adjustments are made due to the national state of disaster and the potential negative impacts of COVID-19 on the economy.

The bill 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 incidental thereto.

The Disaster Management Tax Relief Administration Bill has also been tabled.

The bill 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 the 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.

Also tabled yesterday during the 2020 Supplementary Budget were the Division of Revenue Amendment Bill and the Adjustments Appropriation Bill.

The Division of Revenue Amendment Bill aims to:

• amend the Division of Revenue Act, 2020, in accordance with the Money Bills and Related Matters Act, 2009; and
• provide for matters connected therewith.

The Adjustments Appropriation Bill aims to:

• effect adjustments to the appropriation of money from the National Revenue Fund for the requirements of the State in respect of the 2020/21 financial year; and
• provide for matters incidental thereto.