Covid 19 Relief

Updated 24 April 2020

In this uncertain time, the South African Government has put plans in place to assist business owners, employers and employees. We have compiled a list of various relief initiatives that Government has made available along with a link that you can click on to get more information

Relief available for employees

Employees who fall ill with Covid -19 through exposure at their work place. Read More
Employees who are placed on reduced work time can claim from the UIF for the shortfall in earnings. Read More
Employees who are quarantined and or fall ill with Covid-19 may be eligible to claim from UIF for illness benefit. Read More 

Relief available for employers

Employers who are unable to pay employees during the lockdown, the employer can apply for the “National Disaster Benefit” from the UIF. Read More

Employers can apply for the Temporary Employer / Employee Relief Scheme (TERS), which is essentially a funding agreement between the UIF and the distressed company, to assist distressed companies in the form of subsidies to fund wages directly, enabling employers to pay employees directly. Read More

Relief offered by SARS

  • PAYE liabilities – tax compliant businesses with a turnover of less than R100 million can delay 35% of their PAYE liabilities over the next four months (ending 31 July 2020)
  • Provisional tax – tax compliant businesses with a gross income of less than R100 million can defer certain percentages of payment of provisional tax, without penalties or interest 
  • Employment tax incentive amounts increased to R750 per month per qualifying employee
  • Skills development levy holiday for 4 months from 1 May 2020
  • Fast tracking of VAT refunds
  • Carbon tax - three month deferral for filing and payment
  • Postponement of some of the 2020 Budget measures, including those relating to the limitation of deduction of interest and limiting the use of assessed losses carried forward. Read More

Relief available for Small and Medium Sized entities

The Department of Small Business Development has made over R500 million available to assist small and medium sized entities that are negatively affected. This is in the form of a debt relief finance scheme. Link 1 Link 2
The Department of Tourism has made an additional R200 million available to assist SMEs in the sector. Read More
Funding will be available to assist small businesses through the Solidarity Fund. Read More

The Industrial Development Corporation (IDC) and Department of Trade, Industry & Competition (DTIC) have put together an industrial funding package:

  • R500m for trade finance to import essential medical products
  • R700m from the Department of Trade, Industry & Competition (DTIC) from the Manufacturing Competitiveness Enhancement Programme (MCEP) to assist suppliers of identified critical goods that are affected by the outbreak of COVID-19. 
    • This R700million will be shared with the Small Enterprise Finance Agency (SEFA) and the National Empowerment Fund (NEF)
  • Essential suppliers finding Read More
  • Interventions in response to Covid-19 Read More

The National Empowerment Fund (NEF) has been tasked by the DTIC with the management of the R200 mil COVID-19 Black Business Funding Solution. Read More

The South African Future Trust was established to support SMEs who are financially burdened. Applications can be made through Nedbank, ABSA, Standard Bank and First National Bank. 

Covid-19 SME Loans schemes will be introduced by participating banks, offering 5 year loans at the prime lending rate to assist with operational costs incurred over the next 3 months. Entities must demonstrate impact by Covid-19 and have a turnover of less and R300 million, amongst other criteria. Details available on relevant banks’ websites.

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