YOU MIGHT BE ELIGIBLE FOR A SARS REBATE IN THE FORM OF AN EMPLOYMENT TAX INCENTIVE (ETI)
Cash is King, and in this day and age, if the South African Revenue Service (“SARS”) provides an incentive, it will be in your business’ best interest to utilise it in full.
What is the Employment Tax Incentive (“ETI”)
SARS introduced the Employment Tax Incentive (“ETI”) with the aim of stimulating the economy through providing an incentive to employers that hire young job seekers.
The incentive is in the form of providing the employer with a deduction in the amount of Pay-as-you-earn (“PAYE”) payable to SARS by the employer, whilst leaving the net remuneration payable to the employee unaffected. This will result in a non-taxable income in the pocket of the employer.
The ETI will be available for employers to be claimed up and until 28 February 2019, and may be claimed for a maximum period of 24 months per employee.
Which employees qualify for the ETI?
The following employees will qualify for the incentive:
How will my incentive be calculated?
The ETI will be calculated on the following basis:
How do I receive the incentive?
On a monthly basis, your business will be required to pay over to SARS, employee’s tax in the form of PAYE. The incentive calculated above will be deducted from the amount of PAYE payable to SARS. The balance is a non-taxable income in the hands of the business.
*The information contained in this written piece is intended as guidance only and is not considered to be a legal reference. Kindly seek guidance from your registered tax practitioner in order to obtain an understanding whether your business will qualify for the incentive.