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May 2020

UIF TERS Open for May Applications

As part of the government’s response to the negative economic impact of the COVID-19 Lockdown, the Unemployment Insurance Fund (“UIF”) has been managing the processing and payment of claims submitted in relation to the Temporary Employer/Employee Relief Scheme (“TERS”).The total payments made to employers/employees, as confirmed by the Department of Employment and Labour (“DEL”) on 26 May 2020, is just over R 15 billion. These payments, however, only relate to the month of April. UIF TERS relief for May has been long awaited by employers and employees.

CONFUSED ABOUT YOUR PROVISIONAL TAX AND PAYE COMPLIANCE OBLIGATIONS DUE TO COVID-19?

The schedule hereunder illustrates the relevant EMP201 submissions and payments impacted by the deferral of payment of 35% of the PAYE liability as well as the submissions and payments impacted by the six-month instalment catch-up of the four-month 35% PAYE liability previously deferred.

TERS, Tax Relief and Level 4 Regulations

On 13 May 2020, President Cyril Ramaphosa re-affirmed the government’s commitment to balancing the health of the South African people and the ability of those exact people to earn a living. He commented that the positivity rate has remained low and stable, allowing for a further relaxation of the regulations under Level 4. We have already seen some of these relaxations implemented during the course of May.   The take away from his latest speech was that the government will immediately begin a process of consultation with relevant stakeholders on a proposal that by the end of May, most of the country be placed on Level 3, but that those parts of the country with the highest rates of infection remain on Level 4. Minister of Health, Zweli Mkhize announced that the lockdown will be assigned on a district basis and not provincial as initially speculated.   The full speech of the president of 13 May 2020 can be located HERE.   An updated version of the regulations under Level 3 has not yet been released, but we will communicate as such when more information becomes available.   Since our “Moore: Alert” on the Level 4 Lockdown Regulations, which can be located HERE, additional information has been released by the National Treasury, the UIF and the government on various matters.   In this article we communicate the latest developments with respect to UIF TERS, Tax Relief and Level 4 Lockdown Regulations in order to ensure our client base remains informed and vigilant. We request our readers to read our article in conjunction with the relevant source documents, where referred to.