WORK OUT IF YOU QUALIFY FOR THE EMPLOYMENT TAX INCENTIVE (ETI) IN A FEW SIMPLE STEPS

Answer these questions and find out.
 
Top Tip: If you would like to make changes to any of your responses on the page, you need to refresh the page.
 
Disclaimer:
What is contained in this questionnaire is intended as a guide only and is not considered to be a legal reference nor is it a binding ruling. The questionnaire does not take the place of legislation and readers who are in doubt regarding any aspect of the information displayed in the questionnaire should refer to the relevant legislation, or seek a formal opinion from a suitably qualified individual. If you are uncertain whether you should file a return or not, then it is recommended that you file a return.

More information
  • Learn how to register for eFiling
  • Visit your nearest SARS branch
  • Contact your own tax advisor/tax practitioner
  • If calling from within South Africa, contact the SARS Contact Centre on 0800 00 SARS (7277)
  • If calling from outside South Africa, contact the SARS Contact Centre on +27 11 602 2093 (only between 8am and 4pm South African time).
Are you operating inside a fixed place of business within a special economic zone (SEZ) as designated by the Minister of Finance (see Top Tip below for the list of approved SEZs) AND are there employees that render services mainly within the SEZ?

 

 

Top Tip: The Minister of Finance designated the following six SEZ’s with effect from 1 August 2018, for the purposes of section 6(a)(ii) if the Employment Tax Incentive Act, 2013 (Act No. 26 of 2013):

Code Description
COE COEGA SEZ
DTP DUBE TRADE PORT SEZ
EAL EAST LONDON SEZ
MAP MALUTI-A-PHOFUNG SEZ
SLB SALDANHA BAY SEZ
RIB RICHARDS  BAY SEZ

If yes to both requirements, the age limit of 18 to 29 years is not applicable to those employees

Is your employee aged from 18 -29?

 

 

Top Tip: An employee’s age must be determined  at the end of each month for which the ETI is being claimed.

Therefore an employee will start to qualify in the month that they turn 18 and will end in the month before they turn 30.
Example: Employee A is 29 years and will be 30 years on 22 August 2016.  The last month to claim ETI is July 2016. 

Is your employee a Domestic Worker?

 
Are they connected to you?

 
Does your employee have a South African ID, Asylum Seeker permit or an ID issued in terms of the Refugee Act?

 
Are you paying the qualifying employee(s) the minimum sector wages applicable to your industry or where your industry is not regulated by a sectorial determination, the minimum wage of R2 000?

 
Did you employ them on or after 1 October 2013?

 
Have you displaced an older worker to replace them with this employee?

 
Are you registered for employees' tax?

 
Are you in the private sector, so not a government, provincial or municipality?

 
Do you have any outstanding returns/declarations or owe SARS any money, for which you don’t have a deferral arrangement?

 
Based on your response, your employee may qualify.
We’re sorry but you will not be eligible to receive the ETI for this employee. For more information on the qualifying criteria visit employment tax incentive.

We’re sorry but you will not be eligible to receive the ETI for this employee.

In order to qualify for the ETI you must register for PAYE.

Top Tip: Employers will not qualify for a refund if their ETI is more than their PAYE liability.Click here for more information.

A penalty of R30 000 may be levied, for each and every employee displaced.
Last Updated: 08/10/2018 8:53 AM     print this page ​