Page 660 - SAIT Compendium 2016 Volume1

s 7 EMPLOYMENT TAX INCENTIVE ACT 26 OF 2013 s 14
of that qualifying employee must be an amount that bears to the total amount calculated in terms of subsection (2) or (3) the same ratio as the number of hours that the qualifying employee was employed by that employer in that month bears to the number 160.
[Sub-s. (5) substituted by s. 116 (1) of Act 43 of 2014 – date of commencement: 1 March 2015.]
8 Unavailability of employment tax incentive for reducing employees’ tax
An employer may not reduce the employees’ tax
payable by that employer in respect of a month by the amount of the employment tax incentive available to that employer in that month if, on the last day of that month, the employer—
(a) has failed to submit any return as de ned in section 1 of the Tax Administration Act on the basis required by section 25 of that Act; or
(b) has any outstanding tax debt as de ned in section 1 of the Tax Administration Act, but excluding a tax debt—
(i) in respect of which an agreement has been entered into in accordance with section 167 or 204 of the Tax Administration Act;
(ii) that has been suspended in terms of section 164 of the Tax Administration Act; or
(iii) that does not exceed the amount referred to in section 169 (4) of the Tax Administration Act.
9 Roll-over of amounts
(1) Subject to subsection (4) and section 10 (3), if in any month the amount of the employment tax incentive available to an employer exceeds the amount payable by the employer in respect of employees’ tax, the amount of the employment tax incentive by which the employees’ tax may be reduced in the succeeding month must be increased by adding the amount of that excess to the amount of the employment tax incentive that is available in that succeeding month.
(2) If an employer does not reduce employees’ tax in the amount of the employment tax incentive despite that amount being available to that employer, the sum of the amounts by which the employer would have been entitled to reduce employees’ tax must be treated as an excess contemplated in subsection (1) in the rst month that the employer reduces employees’ tax in the amount of the tax incentive available to the employer.
(3) If, by virtue of section 8, an employer may not reduce employees’ tax in the amount of the employment tax incentive available to that employer, the sum of the amounts by which the employer would have been entitled to reduce employees’ tax payable by that employer if the employer had not been subject to section 8 must be treated as an excess contemplated in subsection (1) in the rst month that the employer is not subject to section 8.
(4) ......
[Sub-s. (4) deleted by s. 117 (1) of Act 43 of 2014 – deletion deemed to have come into operation on 1 January 2014.]
10 Reimbursement
(1) At the end of the period for which the employer is required to render a return in terms of paragraph 14 (3) (a) of the Fourth Schedule to the Income Tax Act, payment of an amount equal to the excess contemplated in section 9 (1) must be claimed from the South African Revenue Service in the form and manner and at the time and place prescribed by the Commissioner for the South African Revenue Service.
(2) An amount equal to the excess contemplated in section 9 (1) must be paid to the employer from the National Revenue Fund and be treated as a drawback from revenue charged to the National Revenue Fund.
(3) Where an employer has claimed payment in terms of subsection (1), the amount of the excess in respect of the period to which the claim relates must be deemed to be nil in the month immediately following that period.
(4) The amount of the excess contemplated in subsection (1) payable to an employer may not be paid to that employer if the employer—
(a) has failed to submit any return contemplated in
section 8 (a); or
[Para. (a) substituted by s. 142 (1) of Taxation Laws
Amendment Act, 2015 (‘8 (1) (a)’ replaced by ‘8 (a)’) – substitution deemed to have come into operation on 1 January 2014.]
(b)
has any tax debt contemplated in section 8 (b). [Para. (b) substituted by s. 142 (1) of Taxation Laws Amendment Act, 2015 (‘8 (1) (b)’ replaced by ‘8 (b)’)
– substitution deemed to have come into operation on 1 January 2014.]
(5) Where—
(a) an employer has claimed payment in terms of
subsection (1); and
(b) the amount contemplated in subsection (2) was not
paid in terms of subsection (4),
that amount must be paid to an employer during any month in the period for which the employer is required to render a return in terms of paragraph 14 (3) (a) of the Fourth Schedule to the Income Tax Act subsequent to the period contemplated in subsection (1) in the rst month during that period in which the employer is not subject to subsection (4).
[Sub-s. (5) added by s. 118 (1) of Act 43 of 2014 – addition
deemed to have come into operation on 1 January 2014.] (6) Where an amount contemplated in subsection (2) is not paid by virtue of subsections (4) and (5) that amount must be deemed to be nil at the end of the period
contemplated in subsection (5).
[Sub-s. (6) added by s. 118 (1) of Act 43 of 2014 – addition deemed to have come into operation on 1 January 2014.]
[Date of commencement of s. 10: 19 December 2014.] Part IV
Miscellaneous (ss 11–14)
11 Reporting
(1) The Commissioner of the South African Revenue Service must submit to the Minister of Finance a report in the form and manner and containing the information that the Minister of Finance may prescribe by regulation in the Gazette for the purposes of the monitoring and evaluation of the employment tax incentive.
(2) The Minister of Finance must publish information on the employment tax incentive twice a year.
12 Cessation of employment tax incentive
An employer may not receive the employment tax incentive after 1 January 2017.
13 Amendment of laws
The laws speci ed in the second column of the Schedule are hereby amended to the extent set out in the third column of that Schedule.
14 Short title and commencement
(1) This Act is called the Employment Tax Incentive Act, 2013.
652 SAIT CompendIum oF TAx LegISLATIon VoLume 1