Page 659 - SAIT Compendium 2016 Volume1

s 5 EMPLOYMENT TAX INCENTIVE ACT 26 OF 2013
s 7
(i) the number of employees that have been displaced by the employer; and
(ii) the effect that the disquali cation may directly or indirectly have on the employees of the employer.
(2) For the purposes of subsection (1), an employer is deemed to have displaced an employee if—
(a) the resolution of a dispute, whether by agreement,
order of court or otherwise, reveals that the dismissal of that employee constitutes an automatically unfair dismissal in terms of section 187 (1) (f) of the Labour Relations Act; and
[Para. (a) substituted by s. 114 (1) of Act 43 of 2014 – substitution deemed to have come into operation on 1 January 2014.]
Part III
Determining amount of employment tax (ss 7–10)
7 Determining amount of employment tax incentive
(1) During each month, commencing from 1 January
2014, that an employer employs a qualifying employee, the amount of the employment tax incentive available to that employer is the sum of the amounts determined in respect of each qualifying employee of that employer stipulated in subsections (2) and (3) and section 9.
(2) During each month of the rst 12 months in respect of which an employer employs a qualifying employee, the amount of the employment tax incentive in respect of that qualifying employee, if the monthly remuneration of the employee is—
(a) R2 000 or less, is an amount equal to 50 per cent of
the monthly remuneration of the employee;
(b) more than R2 000 but less than R4 001, is an amount
of R1 000;
(c) more than R4 000 but less than R6 001, is an amount
determined in accordance with the following formula: X = A – (B × (C – D))
in which formula—
(i) ‘X’ represents the amount of the monthly
employment tax incentive that must be
determined;
(ii) ‘A’ represents the amount of R1 000;
(iii) ‘B’ represents the number 0,5;
(iv) ‘C’ represents the amount of the monthly
remuneration of the employee; and
(v) ‘D’ represents the amount of R4 000; or
(d) more than R6 000, is an amount of nil.
(3) During each of the 12 months after the rst 12
months that the same employer employs the qualifying employee, the amount of the employment tax incentive in respect of that qualifying employee, if the monthly remuneration of the employee is—
(b)
the employer replaces that dismissed employee with an employee in respect of which the employer is eligible to receive the employment tax incentive.
6 Qualifying employees
An employee is a qualifying employee if the employee—
(a)
(i) is not less than 18 years old and not more than 29 years old at the end of any month in respect of which the employment tax incentive is claimed;
(ii) is employed by an employer operating through a xed place of business located within a special economic zone designated by notice by the Minister of Finance in the Gazette and that employee renders services to that employer mainly within that special economic zone; or
(iii) is employed by an employer in an industry designated by the Minister of Finance, after consultation with the Minister of Labour and the Minister of Trade and Industry, by notice in the Gazette;
(i) is in possession of an identity card referred to in section 14 of the Identi cation Act, 1997 (Act 68 of 1997), issued to that employee after application for the card in terms of section 15 of that Act;
(ii) is in possession of an asylum seeker permit, issued to that employee in terms of section 22 (1) of the Refugees Act, 1998 (Act 130 of 1998), after application for the permit in terms of section 21 (1) of that Act; or
(iii) is in possession of an identity document issued in terms of section 30 of the Refugees Act, 1998 (Act 130 of 1998);
(b)
[Sub-para. (iii) added by s. 115 (1) (a) of Act 43 of 2014 – addition deemed to have come into operation on
1 January 2014.]
(c) in relation to the employer, is not a connected person as de ned in section 1 of the Income Tax Act;
(d) is not a domestic worker as de ned in section 1 of the Basic Conditions of Employment Act, 1997 (Act 75 of 1997);
(e) was employed by the employer or an associated person on or after 1 October 2013 in respect of employment commencing on or after that date;
(f) is not an employee in respect of whom an employer is ineligible to receive the incentive by virtue of section 4; and
(g) receives remuneration in an amount less than R6 000 in respect of a month.
[Para. (g) added by s. 115 (1) (b) of Act 43 of 2014
– addition deemed to have come into operation on 1 January 2014.]
more than R6 000, is an amount of nil.
(4) If a qualifying employee was previously, on or
after 1 January 2014, employed by an associated person in relation to the employer that employs the qualifying employee, the number of months that the qualifying employee was employed by the associated person must be taken into account by that employer for the purposes of this section as if that employee had already been employed by that employer for that number of months.
(5) If an employer employs a qualifying employee for less than 160 hours in a month, the employment tax incentive to be received in respect of that month in respect
(a) (b) (c)
R2 000 or less, is an amount equal to 25 per cent of the monthly remuneration of the employee;
more than R2 000 but less than R4 001, is an amount of R500;
more than R4 000 but less than R6 001, is an amount determined in accordance with the following formula:
X = A – (B × (C – D))
in which formula—
(i) ‘X’ represents the amount of the monthly
employment tax incentive that must be
determined;
(ii) ‘A’ represents the amount of R500;
(iii) ‘B’ represents the number 0,25;
(iv) ‘C’ represents the amount of the monthly
remuneration of the employee; and
(v) ‘D’ represents the amount of R4 000; or
(d)
SAIT CompendIum oF TAx LegISLATIon VoLume 1 651
EMPLOYMENT TAX INCENTIVE ACT