Looting: Tax breaks and other mechanisms
available to Taxpayers.

The recent unrest in KwaZulu-Natal and Gauteng, which lead to violence and looting at the cost of many lives and damage to industry has left the country in distress.

The South African Property Owners Association estimates a cost of around R50 billion in lost output while placing 150,000 jobs at risk. In the aid of helping the country, the government has come up with several funding mechanisms, including:

Funding for SMMEs affected by the pandemic through a once-off business survival funding.

Assistance in form of contribution from large businesses to support SMMEs, job creation and elimination of hunger and poverty. Quicker payments by the UIF to support workers who lost their jobs and income because of the recent unrest.

Expansion of the Employment Tax Incentive for a 4-month period to include any employee earning below R6 500 and increase the incentive amount by up to R750 per month.

This is in aid of encouraging employers to hire and retain employees.

Deferral of the payment of PAYE taxes for a 3-month period to help businesses with additional cash flow. There will be an automatic deferral of 35% of PAYE liabilities for employers with revenue below R100 million.

The payment of excise taxes by the alcohol sector will also be deferred for a period of three months, to ease the burden on the sector as it recovers.

Looting, protests, and rioting have led to substantial significant damages to buildings, vehicles, and other assets. Taxpayers may therefore be thinking of the tax implications involved.

Other mechanisms available to taxpayers

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