South Africa announces tax relief for virus-hit businesses


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South Africa announces tax relief for virus-hit businesses

On Sunday, the 29th of March 2020, the National Treasury of South Africa, an upper-middle income highly industrialized country and the second-largest economy of the African continent by size, had issued a statement saying that it had implemented a new tax subsidy of $28 or 500 South African Rand per month for each workers to their employers for the next four months in order to mitigate the malevolent financial fallouts of a virus outbreak which the World Health Organization (WHO) had declared a global-scale pandemic on March 11th.

Aside from that, in its Sunday’s (March 29th) statement, the South Africa’s National Treasury was also quoted saying that it would also allow employers or businesses a delay of four months in paying off 20 per cent of their employees’ tax liabilities, nonetheless, this legislation in particular would be effective for the businesses having an annualized revenue of 50 million rand ($2.8 million) or less.

Besides, as the South Africa’s grief-sickened Government of President Cyril Ramaphosa had inclined a 21-day lockdown on Friday (March 27th), eventually battering the nation’s recessed economy whose sovereign credit rating had been slashed in to a “junk” territory on Friday (March 27th) by the NY-based global rating agency Moody’s, referring to the scale of disastrous downfalls brewed off the pandemic, the South African Treasury said in a statement on Sunday (March 29th), “The tax adjustments are made in light of the National State of Disaster and due to the significant and potentially lasting negative impacts on the economy from the spreading of the COVID-19 virus. ”