Q: I have a
client who has employees on a fixed term contract annually from April to
October. I need to find out if these employees are ‘qualifying’ employees under
the new ETI Act.
A: The Act does
not exclude contract workers, seasonal workers etc. as long as they meet the
has a valid South African ID;
is 18 to 29 years old (please note that the age limit is not
applicable if the employee renders services inside a special economic zone
(SEZ) to an employer that is operating inside the SEZ, or if the employee is
employed by an employer that operates in an industry designated by the Minister
is not a domestic worker;
is not a "connected person” to the employer;
was employed by the employer or an associated person to the
employer on or after 1 October 2013; and
is not an employee in respect of whom an employer is
disqualified to receive the ETI (i.e.
the employee is paid below the minimum
wage applicable to that employer or paid a wage below R2 000 per month if
a minimum wage not applicable).
Disclaimer: Nothing in this query and answer should be construed as
constituting tax advice or a tax opinion. An expert should be consulted for
advice based on the facts and circumstances of each transaction/case. Even
though great care has been taken to ensure the accuracy of the answer, SAIT do
not accept any responsibility for consequences of decisions taken based on this
query and answer. It remains your own responsibility to consult the relevant
primary resources when taking a decision.
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.