COVID-19 :

Small Business Tax Implications

As far as we have seen, no formal regulations or detail on the president’s speech has been published.


We have, however, compiled a few answers to common questions stemming from our client base.


  1. Do I have to pay my VAT at the end of this month?
    Yes, the dispensation announced by the President applies only to corporate tax and pay as you earn (PAYE).
  2. When does the special dispensation for PAYE start and how do I apply for this?
    At this stage, we can only assume that it will relate to the PAYE payment due on 7 April. Unfortunately, there has been no confirmation of this date or of the required process.
  3. Does my business qualify for the deferred PAYE and Income Tax arrangement?
    Only tax compliant businesses with a turnover of less than R50million would be eligible at this stage.
  4. Which corporate income tax payment can be deferred?
    At this stage, we don’t know. As with PAYE, we can only assume that it will relate to provisional tax payments due at the end of this month and for the 6 months thereafter. Note : It would appear that the deferment arrangement does not relate to outstanding taxes from previous years.
  5. I am a business with a turnover exceeding R50million but have very little profit.
    Can I defer my PAYE, VAT or corporate income tax? At this stage, it would appear that you are not allowed to defer any of your tax obligations.
  6. How do I apply for funding or government assistance?
    You can register at We do not know how government will allocate funds at this stage. (Other than that businesses critical to the pandemic – e.g. medical supplies etc, will be given priority).

Once again, please feel free to contact any of our Partners should you need further assistance.