Employment Tax Incentive (ETI)

APPLICABILITY PERIOD

1 April 2020 – 31 July 2020

ETI BENEFITS THAT HAVE BEEN EXPANDED

The current ETI program states that the employer can claim the ETI in respect of qualifying employees between 18 and 29 years who earn less than R6 500 per month.

For a limited period of four months, beginning 1 April 2020 and ending on 31 July 2020, SARS will expand the ETI benefits as follows:

  • The maximum amount of ETI claimable for eligible employees in the first year of employment will increase from R1 000 to R1 500 per month
  • The maximum amount of ETI claimable for eligible employees in the second year of employment will increase from R500 to R1 000 per month
  • A monthly ETI claim to the amount of R500 can be claimed for employees between 18 and 29 who are no longer eligible for the ETI as the employer has claimed ETI in respect of the employees for 24 months
  • A monthly ETI claim to the amount of R500 can be claimed for employees between 30 and 65 who are not eligible for the ETI due to their age.

Furthermore, ETI claims submitted on EMP201 will be reimbursed to the employer monthly instead of twice a year.

QUALIFICATION CRITERIA

  • These exemption measures will only apply to employers that were registered with SARS as at 1 March 2020.
  • Requirements in terms of section 8 and 10(a) of the ETI Act will continue to apply.
  • Qualifying employees must be between the ages of 18-65 and earn less than R6 500 per month.

WHERE CAN I FIND SUPPORT? 

North regions
(including Pretoria, North West, Limpopo, Mpumalanga & West Rand)
Contact.north@sars.gov.za

Central regions (including East Rand, Soweto, Alberton & Vereeniging)
Contact.central@sars.gov.za

Kwa-Zulu Natal
Contact.east@sars.gov.za

Western Cape
Contact.south@sars.gov.za

SARS Contact Centre Number
0800 00 7277 or go to www.sars.gov.za

Additional support can be through online channels such as eFiling, the SARS mobiApp and e@syFile