• Effective date (period for which this relief is available) – 1 April 2020 to 31 July 2020. 
  • Applies to small or medium sized businesses
    • Where a small or medium sized businesses is defined as any company conducting a trade with an annual turnover not exceeding R50 million (we assume a business trust and a close corporation to qualify for this definition).
  • Compliance – tax returns may not be in arrears and there must be no outstanding debt with SARS (unless there is some arrangement with SARS or the debt is less than R100.

At 5 April 2020: the eligibility criteria for individuals carrying on a business have yet to be finalised, but one possibility is that they will be eligible if their turnover is less than R5 million and no more than 10 per cent of their turnover is derived from interest, dividends, foreign dividends, rental from letting fixed property and any remuneration received from an employer.

Relief granted

Qualifying businesses will be able to defer their first and second provisional tax liabilities, without SARS imposing administrative penalties and interest for the late payment of the deferred amount, as follows:

The first provision tax payment due from 1 April 2020 to 30 September 2020 will be based on 15% (not 50%) of the estimated tax liability

The second provisional tax payment from 1 April 2020 to 31 march 2021 will be based on 50% (65% in aggregate – 15% plus 50%) of the estimated total tax liability

The balance (100% – 65%) of 35% of the estimated tax liability will have to be paid by the third provisional (top-up) date to avoid interest. The due date for the third provisional top-up payment is 30 September for all companies with a February year end and six months after the end of the financial year for all other year ends. 

Similar relief has been granted to “qualifying Micro businesses” which are tax compliant registered micro businesses.


Example (where the company has a February year end and the assumed total tax lability is R800 000)

P1: 31 August 2020R 400 00050%R 120 00015%
P2: 28 February 2021R 400 00050%R 400 00050%
P3 (top-up): 30 September 2021R 0
R 280 00035%
TotalR 800 000100%R 800 000100%