Act 26 of 2013 - SARS

1 Government GazetteREPUBLIC OF SOUTH AFRICARIPHABLIKI YA AFRIKA DZONGATHE PRESIDENCYHOFISI YA PRESIDENTENo. 1032No. 103218 December 201318 December 2013No. 37185It is hereby notified that the Presidenthas assented to the following Act, whichis hereby published for generalinformation: Hi mi tivisa leswaku Presidente uamukerile nawu Iowu wu phablixiwke kuandzisa vutivi bya n wina: Act No. 26 of 2013 : Employment TaxIncentive Act, 2013No 26 of 2013 : Nawu wa Ku vuyeriwahi Xibalo xa Matholelo, 20139 771682 584003 58173 Cape Town,Kaapstad,Vol. 58218 December 20132No. 37185 GOVERNMENT GAZETTE, 18 DECEMBER 2013 Act No. 26 of 2013 Employment Tax Incentive Act, 2013 GENERAL EXPLANATORY NOTE:[]Words in bold type in square brackets indicate omissions fromexisting underlined with a solid line indicate insertions inexisting provide for an employment tax incentive in the form of an amount by whichemployees tax may be reduced; to allow for a claim and payment of an amountwhere employees tax cannot be reduced; and to provide for matters unemployment rate in the Republic is of concern to government;AND SINCE government recognises the need to share the costs of expanding jobopportunities with the private sector;AND SINCE government wishes to support employment growth by focusing on labourmarket activation, especially in relation to young work seekers.

2 AND SINCE government is desirous of instituting an employment tax incentive,BE IT THEREFORE ENACTED by the Parliament of the Republic of South Africa,as follows: ARRANGEMENT OF ACTS ections1. DefinitionsPart IEmployment tax incentive2. Instituting of employment tax incentivePart IIEligible employers and qualifying employees3. Eligible employers4. Compliance with wage regulating measures510(English text signed by the President)(Assented to 17 December 2013 )3No. 37185 GOVERNMENT GAZETTE, 18 DECEMBER 2013No 26 of 2013 Nawu wa Ku vuyeriwa hi Xibalo xa Matholelo, 2013 RITO RO HALMUSELA HI KU ANGARHELA:[]Marito lama nga dzwiharisiwa endzeni ka swiangi swaswikwere ya komba leswi tluriweke eka swinawana leswi lawa ya nga khwatihatiwa hi ntila lowu khomaneke yakomba leswi nghenisiweke eka swinawana leswi nga lulamisela ku vuyeriwa hi xibalo xa ku thola hi ndlela ya ntsengo lowu xibalo xavathoriwa xi nga ha hungutiwaka; ku pfumelela xikoxo na hakelo ya ntsengo lahaxibalo xa vathoriwa xi nga ta ka xi nga hungutiwi; na ku lulamisela timhaka letifambelanaka na wa ku pfumelaka ka mitirho eka Riphabliki swi nga leswitisaka ku khumbekla eka mfumo.

3 NA TANIHILESWI mfumo wu vonaka xilaveko xo avelana kudurheriwa kondlandlamuxa mikateko yo kuma mitirho na xivandla lexi nga ri ki xa mfumo;NA TANIHILESWI mfumo wu tsakelaka ku seketela ku kula ka matholelo hi kukongomisa eka pfuxeta makete wa vatirhi, ngopfu vantshwa lava lavaka va mitirho;NA TANIHILESWI mfumo wu nga na ku tsakela ko sungula ku vuyeriwa hi xibalo xamatholelo,HIKWALAHO KE A WU SIMEKIWI hi Palamende ya Riphabliki ra Afrka Dzongahi ndlela leyi landzelaka: MAVEKETELELO YA SWIYENGES wiyenge1. TinhlamuseloXiphemu xa IKu vuyeriwa hi xibalo xa matholelo2. Ku tirhisiwa ka ku vuyeriwa hi xibalo xa matholeloXiphemu xa IIVathorti lava faneleke na vathoriwa lava fikelelaka3. Vathori lava faneleke4. Ku landzelela mipimo yo lawula miholo510(English text signed by the President)(Assented to 17 December 2013 )4No.

4 37185 GOVERNMENT GAZETTE, 18 DECEMBER 2013 Act No. 26 of 2013 Employment Tax Incentive Act, 20135. Penalty and disqualification in respect of displacement6. Qualifying employeesPart IIID etermining amount of employment tax incentive7. Determining amount of employment tax incentive8. Unavailability of employment tax incentive for reducing employees tax9. Roll-over of amounts10. ReimbursementPart IVMiscellaneous11. Reporting12. Cessation of employment tax incentive13. Amendment of laws14. Short title and commencementSCHEDULED efinitions1.(1) In this Act, unless the context indicates otherwise associated person , in relation to an employer (a)where the employer is a company, means any other company which isassociated with that employer by reason of the fact that both companies aremanaged or controlled directly or indirectly by substantially the same persons;(b)where the employer is not a company, means any company which is managedor controlled directly or indirectly by the employer or by any partnership ofwhich the employer is a member; or(c)where the employer is a natural person, means any relative of that employer; company means a company as defined in section 1 of the Companies Act, 2008(Act No.)

5 71 of 2008); employee means a natural person (a)who works directly for another person; and(b)who receives, or is entitled to receive remuneration, from that other person,but does not include an independent contractor; employees tax means the amount deducted or withheld and that must be paidover to the Commissioner for the South African Revenue Service by virtue ofparagraph 2(1) of the Fourth Schedule to the Income Tax Act; Income Tax Act means the Income Tax Act, 1962 (Act No. 58 of 1962); Labour Relations Act means the Labour Relations Act, 1995 (Act No. 66 of1995); monthly remuneration (a)where an employer employs a qualifying employee for a month, means theamount paid or payable in respect of that month; or(b)where an employer employs a qualifying employee for part of a month, meansthe amount that would have been payable in respect of that month had thatemployer employed that employee for the entire month; qualifying employee means an employee contemplated in section 6; special economic zone means a special economic zone designated by theMinister of Trade and Industry pursuant to an Act of Parliament; Tax Administration Act means the Tax Administration Act, 2011 (Act No.

6 28of 2011);4510152025303540455No. 37185 GOVERNMENT GAZETTE, 18 DECEMBER 2013No 26 of 2013 Nawu wa Ku vuyeriwa hi Xibalo xa Matholelo, 20135. Ndziho na ku humesiwa mayelana na ku susiwa6. Vathoriwa lava fikelelakaXiphemu xa IIIKu veka ntsengo wa ku vuyeriwa hi xibalo xa matholelo7. Ku veka ntsengo wa ku vuyeriwa hi xibalo xa matholelo8. Ku nga vi kona ka ku vuyeriwa hi xibalo xa matholelo xo hunguta xibalo xamuthori9. Ku hundzisiwa ka mitsengo10. Ku hakeriwaXiphemu xa IVSwo hambanahambana11. Ku vika12. Ku hela ka ku vuyeriwa hi xibalo xa matholelo13. Ku cinciwa ka milawu14. Nhlokomhaka yo koma na ku sungula ku tirhaXEDULUT inhlamuselo1.(1) Eka Nawu lowu, handlekaloko xiyimo xi komba hi ndlela yin wana munhu loyi a nga na vuxaka , mayelana na muthori (a)laha muthori ku nga khamphani, swi vula khamphani yin wana na yin wanaleyi hlanganaka na muthori yoloye hikwalaho ka xivangelo xo va tikhamphanihatimbirhi ti fambisiwa kumbe ku lawuriwa hi vanhu van we hi ku kongomakumbe ku nga ri hi ku kongoma;(b)laha muthori ku nga ri ki khamphani, swi vula khamphani leyi fambisiwakakumba ku lawuriwa hi muthori hi ku kongoma kumbe ku nga ri hi kukongoma kumbe xinakulobye xihi na xihi lexi muthori a nga xirho; kumbe(c)laha muthori a nag munhu wa ntumbuluko, swi vula xaka rihi na rihi ramuthori yoloye.

7 Khamphani swi vula khamphani tanihilaha yi nga hlamuseriwa hakona ekaxiyenge xa 1 xaCompanies Act, 2008 (Nawu wa No. 71 wa 2008); muthoriwa swi vula munhu wa ntumbuluko (a)loyia tirhelaka munhu un wana hi ku kongoma; naswona(b)loyi a kumaka, kumbe a faneleke ku kuma muholo ku suka eka munhu yoloye,Kambe a swi katsi mukondiraka loyi a tiyimeleke; xibalo xa vathoriwa swi vula ntsengo lowu kokiwaka kumbe ku khomiwa lowufaneleke ku hakeriwa eka Khomixinara wa Mitirho ya Xibalo ya Afriak-Dzonga hiku landza ndzimana ya 2(1) ya Xedulu ya Vumune ya Nawu wa Xibalo xa Muholo; Nawu wa Xibalo xa Muholo swi vulaIncome Tax Act,1962 (Nawu wa No. 58wa1962); Nawu wa Vuxaka bya Vatirhi swivula Labour Relations Act,1995 (Nawu waNo. 66 wa 1995); muholo wa n hweti (a)laha muthori a tholaka vatirhi lava fikelelaka ku ringana mn hweti, swi vulantsengo lowu hakeriwaka kumbe wu faneleke ku hakeriwa eka n hwetiyoleyo; kumbe(b)laha muthori tholaka vatirhi lava fiukelelaka eka Xiphemu xa n hweti,swivula ntsengo lowu a wu ta va wu hakeriwile eka n hweti yoleyo loko muthoriyoloye a thole vatirhi ku ringana n hweti hinkwayo; muthoriwa loyi a fikelelaka swi vula muthoriwa loyi a langutisiweke ekaxiyenge xa 6; zoni yo hlawuleka ya ikhonomi swi vula zoni yo hlawuleka ya ikhonomi leyivekiweke hi Holobye wa Mabindzu na Vumaki hi ku landza Nawu wa Palamende; Nawu wo Lawula Xibalo swi vulaTax Administration Act, 2011 (Nawu waNo.)

8 28 wa 2011);551015202530354045506No. 37185 GOVERNMENT GAZETTE, 18 DECEMBER 2013 Act No. 26 of 2013 Employment Tax Incentive Act, 2013 wage means wage as defined in section 1 of the Basic Conditions ofEmployment Act, 1997 (Act No. 75 of 1997).(2) For the purposes of the definition of monthly remuneration in subsection (1), remuneration has the meaning ascribed to it in paragraph (1) of the Fourth Scheduleto the Income Tax Act.(3) For the purposes of paragraph(c)of the definition of associated person insubsection (1) relative , in relation to any person, means the spouse of that person oranybody related to him or her or to his or her spouse within the third degree ofconsanguinity, or any spouse of anybody so IEmployment tax incentiveInstituting of employment tax incentive2.

9 (1) An incentive, called the employment tax incentive, in order to encourageemployment creation is hereby instituted.(2) If an employer is eligible to receive the employment tax incentive in respect of aqualifying employee in respect of a month, that employer may reduce the employees taxpayable by that employer in an amount determined in terms of section 7 or receivepayment of an amount contemplated in section 10(2), unless section 8 IIEligible employers and qualifying employeesEligible employer is eligible to receive the employment tax incentive if the employer (a)is registered for the purposes of the withholding and payment of employees tax by virtue of paragraph 15 of the Fourth Schedule to the Income Tax Act;and(b)is not (i) the government of the Republic in the national, provincial or localsphere.

10 (ii) a public entity that is listed in Schedule 2 or 3 to the Public FinanceManagement Act, 1999 (Act No. 1 of 1999), other than those publicentities that the Minister of Finance may designate by notice in theGazetteon such conditions as the Minister of Finance may prescribe byregulation;(iii) a municipal entity defined in section 1 of the Local Government:Municipal Systems Act, 2000 (Act No. 32 of 2000); and(c)is not disqualified from receiving the incentive (i) by the Minister of Finance in accordance with section 5(1)(b), due to thedisplacement of an employee by virtue of section 5(2); or(ii) by not meeting such conditions as the Minister of Finance, afterconsultation with the Minister of Labour, may prescribe by regulation,including (aa)conditions based on requirements in respect of the training ofemployees; and(bb)conditions based on the classification of trade in the most recentStandard Industrial Classification Code issued by Statistics 37185 GOVERNMENT GAZETTE, 18 DECEMBER 2013No 26 of 2013 Nawu wa Ku vuyeri