Government has introduced a new COVID-19 Levy applicable for the years of assessment commencing on 1 July 2020, 1 July 2021 or 1 July 2022 for employers (individuals, sociétés and companies) who have benefited from the Government Wage Assist
Under the voluntary tax disclosure plan, which shall run for three years with effect from January 1, 2021, the Treasury says those who declare pending liability and pay within one year shall enjoy 100 percent interest and penalty waiver.
These measures, which vary in magnitude and scope, are intended to mitigate the economic and fiscal effects on businesses and individuals.
Large amounts are being diverted offshore through base erosion and profit shifting, which involves diverting earnings made in SA, particularly by multinational companies, to lower-tax jurisdictions.
Currently, business tax rates on profits vary between 15% for the tourism, agriculture and fisheries sector; 25%-30% for small- to medium-sized businesses; and 33% for the largest businesses.