The national council of provinces (NCOP) seeks comment on the Disaster Management Tax Relief Bill and the Disaster Management Tax Relief Administration Bill.
The national assembly passed the bills and sent them to the NCOP for concurrence last week.
The bills were tabled in June 2020 as part of the 2020 Supplementary Budget.
The Disaster Management Tax Relief 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 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.
The standing committee on finance amended the Disaster Management Tax Relief Bill by extending by two months, the relief provided for in Clauses 7,8 and 9 of the bill.
As regards the Disaster Management Tax Relief Administration Bill, the committee amended clause 2 on COVID tax relief measures so that repayments would now only begin in October 2020 and run through until March 2021.
Speaking to the national assembly during the debate on the bills, the finance minister, Tito Mboweni, declared that the tax measures in the bills were always part of a much broader package announced by president Ramaphosa to combat the impact of COVID-19 and the bills only reflect one portion of that package.
The select committee on finance invites comment until 7 September 2020.