Finance Minister Tito Mboweni on Sunday announced exceptional tax measures to counter the impact of the Coronavirus (COVID-19) pandemic.
“The Minister of Finance has announced the following exceptional tax measures as part of the fiscal package outlined by President Cyril Ramaphosa on 23 March 2020 in his speech on the Escalation of Measures to Combat COVID-19,” said the Ministry of Finance.
The measures come as South Africa is currently under a 21-day lockdown, which got underway at midnight on 26 March. To date, South Africa has recorded over 1 000 cases of the virus.
These measures are over and above the tax proposals made in the 2020 Budget on 26 February 2020.
The tax measures include:
“The tax adjustments are made in light of the National State of Disaster and due to the significant and potentially lasting negative impacts on the economy from the spreading of the COVID-19 virus,” said the ministry.
It said there is a critical need for government interventions to assist with job retention and assist businesses that may be experiencing significant distress.
The measures will take effect from 1 April 2020.