Page 657 - SAIT Compendium 2016 Volume1

EMPLOYMENT TAX INCENTIVE ACT 26 OF 2013 s 1 EMPLOYMENT TAX INCENTIVE ACT 26 OF 2013
[ASSENTED TO 17 DECEMBER 2013] [DATE OF COMMENCEMENT: 1 JANUARY 2014] (Unless otherwise indicated)
(English text signed by the President)
as amended by
Taxation Laws Amendment Act 43 of 2014 Taxation Laws Amendment Act, 2015
ACT
To provide for an employment tax incentive in the form of an amount by which employees’ tax may be reduced; to allow for a claim and payment of an amount where employees’ tax cannot be reduced; and to provide for matters connected therewith.
Preamble
SINCE the unemployment rate in the Republic is of concern to government;
AND SINCE government recognises the need to share the costs of expanding job opportunities with the private sector; AND SINCE government wishes to support employment growth by focusing on labour market activation, especially in relation to young work seekers;
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:—
Section
1 De nitions
ARRANGEMENT OF ACT
Part I Employment tax incentive
2 Instituting of employment tax incentive
Part II
Eligible employers and qualifying employees
3 Eligible employers
4 Compliance with wage regulating measures
5 Penalty and disquali cation in respect of displacement
6 Qualifying employees
Part III
Determining amount of employment tax incentive
7 Determining amount of employment tax incentive
8 Unavailability of employment tax incentive for reducing employees’ tax
9 Roll-over of amounts
10 Reimbursement
11 Reporting
12 Cessation of employment tax incentive
13 Amendment of laws
14 Short title and commencement
1 Definitions
(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 is associated with that employer by reason of the fact that both companies are managed or controlled directly or indirectly by substantially the
same persons;
(b) where the employer is not a company, means any
company which is managed or controlled directly or indirectly by the employer or by any partnership of which 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 de ned in section 1 of the Companies Act, 2008 (Act 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 paid over to the Commissioner for the South African Revenue Service by virtue of paragraph 2 (1) of the Fourth Schedule to the Income Tax Act;
‘Income Tax Act’ means the Income Tax Act, 1962 (Act 58 of 1962);
‘Labour Relations Act’ means the Labour Relations Act, 1995 (Act 66 of 1995);
‘monthly remuneration’—
(a) where an employer employs a qualifying employee
Part IV Miscellaneous
SCHEDULE
for more than 160 hours in a month, means the SAIT CompendIum oF TAx LegISLATIon VoLume 1 649
EMPLOYMENT TAX INCENTIVE ACT