FAQ: When will an employer not be allowed to claim the Employment Tax Incentive (ETI) in a specific month?

An employer can’t claim the ETI (i.e. reduce their PAYE (Employees’ Tax) liability) if on the last day of the month, the employer-

  • Has failed to submit any return/declaration
  • Has any tax debt outstanding, excluding a tax debt –
    o Where an agreement has been made for a deferral payment
    o That has been suspended pending an objection or appeal or
    o Where the tax debt is less than R100.
  • Has paid the employee a wage exceeding R6 000 in a specific month.

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