CORONAVIRUS SUPPORT DOCUMENT (released 28 April 2020)
The Coronavirus and related lockdown have resulted in massive economic consequences across South Africa. This document is to assist clients and is intended to set out a high-level summary of the relief measures available. Care should be taken to research and get advice to suite your particular circumstances. We shall provide updates as required.
|Bank finance||All Banks are considering delays or reduction in debt instalments and business loans based on individual circumstances.||Details will be released to their clients during the next few days by individual Banks.|
|Government is assisting Banks with a R200bn loan guarantee scheme as a result of which Banks will provide emergency, easy to access loan finance at prime, for 3 months, with a 6-month payment moratorium, repayable over 5 years, to be used to fund operational expenses.|
|Clients must be SARS compliant, be in good standing with their Banks at 29 February, not have capacity to borrow, and are in financial stress as a result of COVID-19.|
|Unemployment Insurance Fund UIF TERS
(Temporary Employer Relief Scheme)
|Pays benefits to employers who are unable to pay full salaries as a result of the lockdown. UIF will pay the difference between the amount that employers pay and the UIF benefit. Employers may attend to bulk submissions on behalf of employees.
Applications to be submitted by 30 April 2020.
email@example.com Phone: 0800 030 007
|Taxation||The following measures have been announced:
· Employees tax payments: 35% may be deferred from April to July 2020 without penalties and interest.
· Provisional tax payments: Pay 15% of annual liability for 1st payment, and 65% for 2nd.
· SDL payment holiday from 1 May 2020 for 4 months
· ETI wage subsidies increased to R750 per employee per month.
· Donations to Solidarity Fund tax deductible and donations may be taken into account for PAYE payments.
· Fast tracking of VAT refunds:
|Phone: 0800 00 7277
SARS website: www.sars.gov.za
|allowing filing of VAT returns monthly instead of every 2 months
· Carbon Tax liabilities: 3-month deferral of filing and payment
· Access to living annuity funds may now be adjusted to between 0,5% and 20% instead of waiting for annual anniversary
· Late payment penalties: case by case for waiver of penalties
Department of Small Business Development (DSBD)
Businesses that are 100% owned by SA citizens, have 70% SA employees, SARS and UIF compliant, supply various documents including a 6- month cash flow projection. Two facilities:
· Business Growth Resilience Facility for SMMEs who produce or supply health care and related products to combat the spread of COVID- 19
· Debt Relief Financing soft loan facility for 6 months if negatively affected by COVID-19
Details and SMME common application form: https://smmesa.gov.za
Phone: 0860 663 7867
|IDC||Provides funding to businesses for the acquisition and/or manufacturing of essential supplies to combat the epidemic, and also to companies directly or indirectly affected by COVID-19 and unable to fund their operating activities.||Information: www.idc.co.za
Phone: 0860 693 888
|Department of tourism COVID- 19 Relief Fund||Assists SMMEs in hospitality and tourism sectors with grants capped at R50 000 per entity. Must be tax compliant and registered business.||Information: www.tourism.gov.za
Phone: 0860 868 747
|Solidarity Fund||Provide funding to prevent, detect, care and support effects of COVID-19||Information: www.solidarityfund.co.za
Phone: 0860 001 001
|Social Grants by Government||Measures announced:
· Additional child support: R350 in May 2020, additional R500pm from June to October
· All other grant beneficiaries additional R250pm for 6 months
· Special COVID-19 grant for unemployed not getting other benefits of R350pm for 6 months
· Food assistance through vouchers and cash transfers
WhatsApp support 0600 123 456
Emergencies 0800 029 999
012 312 7500
|Sukuma Relief Programme (temporarily closed)||Provides support for SMMEs (sole proprietors and business entities) that are financially impacted by COVID-19. Provides unsecured interest free loans up to R1m and a R25 000 grant with 5-year delayed payment scheme.||Applications may be filed and will be considered when the Fund re-opens
Contact via: www.businesspartners.co.za
|Rentals||· Force Majure clauses in your lease will determine whether you will be entitled to a reduction in rental or payment holiday.
· In the absence of a Force Majure clause, COVID-19 is regarded as a Vis Majure (act of God) as commercial tenants may not be permitted to trade in terms of lockdown
|Commercial and residential tenants should have regard to their legal rights and negotiate with landlords.|