Employment Tax Incentive Act, 2013 (Act No. 26 of 2013)Part III : Determining amount of employment tax incentive7. 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. |
[Section 7(1) substituted by section 92(1) of the Taxation Laws Amendment Act, 2017 (Act No. 17 of 2017)
| (2) | During each month of the first 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— |
[Words preceding (a) substituted by section 5(1)(b) of the Disaster Management Tax Relief Act, 2020 (Act No. 13 of 2020), GG43883, 5 November 2020 - deemed to have come into operation on 1 August 2020 and apply in respect of any remuneration paid on or after that date (Section 5(3)]
| (a) | less than R2 000, is an amount equal to 75 per cent of the monthly remuneration of the employee; |
[Section 7(2)(a) substituted by section 6(1)(a) of the Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2022 (Act No. 19 of 2022), Notice No. 1540, GG47825, 5 January 2023 - deemed to have come into operation on 1 March 2022 (Section 6(2))]
| (b) | R2 000 or more but less than R4 500, is an amount of R1 500; |
[Section 7(2)(b) substituted by section 6(1)(b) of the Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2022 (Act No. 19 of 2022), Notice No. 1540, GG47825, 5 January 2023 - deemed to have come into operation on 1 March 2022 and apply in respect of any remuneration paid on or after that date (Section 6(2))]
| (c) | R4 500 or more but less than R6 500, is an amount determined in accordance with the following formula: |
[Words preceding formula of section 7(2)(c) substituted by section 5(1)(b) of the Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2019 (Act No. 32 of 2019), GG42950, 15 January 2020 - deemed to have come into operation on 1 March 2019 (Section 5(2]
X = A - (B x (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 500; |
| (iii) | ‘‘B’’ represents the number 0,75; |
[Section 7(2)(c)(ii) and (iii) substituted by section 6(1)(c) of the Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2022 (Act No. 19 of 2022), Notice No. 1540, GG47825, 5 January 2023 - deemed to have come into operation on 1 March 2022 (Section 6(2))]
| (iv) | ‘‘C’’ represents the amount of the monthly remuneration of the employee; and |
| (v) | ‘‘D’’ represents the amount of R4 500; or |
[Section 7(2)(c)(v) substituted by section 5(1)(c) of the Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2019 (Act No. 32 of 2019), GG42950, 15 January 2020 - deemed to have come into operation on 1 March 2019 (Section 5(2)]
| (d) | R6 500 or more, is an amount of nil. |
[Section 7(2)(d) substituted by section 5(1)(d) of the Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2019 (Act No. 32 of 2019), GG42950, 15 January 2020 - deemed to have come into operation on 1 March 2019 (Section 5(2)]
| (3) | During each of the 12 months after the first 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— |
[Words preceding (a) substituted by section 5(1)(j) of the Disaster Management Tax Relief Act, 2020 (Act No. 13 of 2020), GG43883, 5 November 2020 - deemed to have come into operation on 1 August 2020 and apply in respect of any remuneration paid on or after that date (Section 5(3)]
| (a) | less than R2 000, is an amount equal to 37,5 per cent of the monthly remuneration of the employee; |
[Section 7(3)(a) substituted by section 6(1)(d) of the Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2022 (Act No. 19 of 2022), Notice No. 1540, GG47825, 5 January 2023 - deemed to have come into operation on 1 March 2022 (Section 6(2))]
| (b) | R2 000 or more but less than R4 500, is an amount of R750; |
[Section 7(3)(b) substituted by section 6(1)(e) of Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2022 (Act No. 19 of 2022), Notice No. 1540, GG47825, 5 January 2023 - deemed to have come into operation on 1 March 2022 (Section 6(2))]
| (c) | more than R4 500 or more but less than R6 500, is an amount determined in accordance with the following formula: |
[Words preceding formula of section 7(3)(c) substituted by section 5(1)(f) of the Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2019 (Act No. 32 of 2019), GG42950, 15 January 2020 - deemed to have come into operation on 1 March 2019 (Section 5(2)]
X = A - (B x (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 R750; |
| (iii) | "B" represents the number 0,375; |
[Section 7(3)(c)(ii) and (iii) substituted by section 6(1)(f) of Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2022 (Act No. 19 of 2022), Notice No. 1540, GG47825, 5 January 2023 - deemed to have come into operation on 1 March 2022 (Section 6(2))]
| (iv) | "C" represents the amount of the monthly remuneration of the employee; and |
| (v) | "D" represents the amount of R4 500; or |
[Section 7(3)(c)(v) substituted by section 5(1)(g) of the Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2019 (Act No. 32 of 2019), GG42950, 15 January 2020 - deemed to have come into operation on 1 March 2019 (Section 5(2)]
| (d) | R6 500 or more, is an amount of nil. |
[Section 7(3)(d) substituted by section 5(1)(h) of the Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2019 (Act No. 32 of 2019), GG42950, 15 January 2020 - deemed to have come into operation on 1 March 2019 (Section 5(2)]
| (3A) | [Section 7(3)(a) deleted by section 5(1)(r) of the Disaster Management Tax Relief Act, 2020 (Act No. 13 of 2020), GG43883, 5 November 2020 - deemed to have come into operation on 1 August 2020 and apply in respect of any remuneration paid on or after that date (Section 5(3)] |
| (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 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. |
[Section 7(5) substituted by section 5(1)(t) of the Disaster Management Tax Relief Act, 2020 (Act No. 13 of 2020), GG43883, 5 November 2020 - deemed to have come into operation on 1 August 2020 and apply in respect of any remuneration paid on or after that date (Section 5(3)]