There is now a range of measures – from government, banks, and insurers – available to South African businesses and individuals amid a crippling corona-induced economic crisis.

From loans to tax breaks, most interventions are aimed at getting small businesses in particular through the next couple of months. More measures are expected to help individuals, the self-employed and the informal sector.

Here’s where you can find help, and money, to get through the coronavirus disaster.

For all businesses

Tax breaks:

Companies can claim back up to R1 500 a month per employee who earns less than R6 500 (for those younger than 30), and R500 for those 30 and older. These amounts will be paid back every month by SARS as part of the Employment Tax Incentive (ETI) programme.

UIF payouts:

As part of the special Temporary Employee/Employer Relief Scheme (TERS), ad-

ministered by the Unemployment Insurance Fund (UIF), money will be paid out to workers in distressed companies. The amounts paid will be a percentage of an employee’s salary, according to a legislated sliding scale from 38% (for the highest earners) to 60% (for the lowest earners). The maximum benefit is R6 730 a month. Companies struggling to pay salaries due to the corona-virus crisis need to report this via email to Covid19ters@labour.gov.za.

Struggling with rent?

While new regulations pave the way for large property landlords and retailers to work together to come up with rent relief schemes, there is not yet any official announcement on rental holidays. But The Foschini Group has already announced that it won’t be paying rent during the lock-down. For now, individual tenants are advised to contact their landlords to agree on new terms.

For small and medium-sized businesses

Government funding:

There are two main government schemes aimed at small businesses. The Debt Relief Finance Scheme will assist distressed small

companies with funding. Then there is the Business Growth/Resilience Facility aimed at small companies which can take advantage of supply opportunities resulting from the coronavirus pandemic or a shortage of goods in the local market. For both of these, companies first need to register at https://smmesa.gov.za/. Further details to apply for both schemes will be released on Thursday. (Money will be paid out within seven business days after an application has been approved)

Delay in payment of provisional tax:

Instead of paying 50% of their expected tax bill six months into the tax year, and then settling the full amount at the end of the tax year, companies are now allowed to pay only 15% after six months, and another 50% by the end of the tax year. Then, by 30 September 2021 (or six months after the end of its financial year), the company needs to pay the outstanding balance. (This option is only for companies with an annual turnover of less than R50 million.)

Delayed employee tax payments:

Businesses with an annual turnover of less that R50 million can also keep back 20% of the pay-as-you-earn (PAYE) payments they were supposed to hand over to the SA Revenue Service (SARS) for the next four months. But they will have to pay back this amount in equal instalments, with the first payment expected on 7 September 2020.

The money made available by the Oppenheimer family will be paid out directly to employees of small, medium and micro-sized businesses as interest-free loans. Employees themselves will not be liable to pay the money back, but companies will be. The typical loan amount per employee is expected to be around R750/week, for a period of 15 weeks. Currently, the money is available to clients of Absa, First National Bank, Nedbank, and Standard Bank, and limited to businesses which were “financially sustainable” before the corona-virus crisis. Businesses will be able to apply directly with their banks from Friday, April 3.
Johann Rupert’s R1 billion:
The Rupert family’s donation will be distributed as loans through Business Partners, a funder of small companies. Apply for assistance on their website address at www.businesspartners.co.za.
For the self-employed
Delay in payment of provisional tax:
Instead of paying 50% of their expected tax bill after six months into the tax year, and settling the full amount at the end of the tax year, provisional taxpayers only have to pay 15% after six months, and another 50% by the end of the tax year. Then, by 30 September 2021, they need to pay the balance. While it hasn’t finalised which individuals would be eligible, Treasury says that it will probably be those who have a turnover of less than R5 million and don’t earn more than 10% of their turnover from interest, dividends, foreign dividends, rentals from letting fixed property and pay received from an employer.

The Oppenheimer family’s R1 billion: