A proposed tax incentive to boost job creation amongst young South Africans could be available to qualifying employers soon.
National Treasury released the Draft Employment Tax Incentive Bill for public comment earlier this month. The incentive is expected to take effect on January 1 next year and would be available for qualifying employment commencing after October 1, 2013.
If introduced unchanged, the incentive will allow qualifying employers to reduce the tax paid to the South African Revenue Service (Sars) on behalf of employees (PAYE) by the amount of the incentive.
Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.