Explainer: Financial help on offer during coronavirus lockdown

Explainer: Financial help on offer during coronavirus lockdown

- The coronavirus hit South African pockets hard when the current 21-day lockdown was announced

- Most economic activities came to a grinding halt and many are worried about their financial future

- Briefly.co.za explores the current measures put into place by government and other entities

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Some citizens are less concerned about the health implications of the coronavirus pandemic and more concerned over the effect the crisis has had on their finances.

With the current 21-day lockdown bringing most companies to a complete standstill, businesses and employees alike are stressing about the economic impact of the situation.

Briefly.co.za explores the current measures put into play in a bid to relieve some of the strain:

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2. All businesses:

  • SARS has announced the Employment Tax Incentive programme, allowing companies to claim back a certain portion of the tax paid per employee.
  • The Unemployment Insurance Fund will help distressed companies pay workers a percentage of their salary. This benefit is capped at R6 730 a month.

2. Rent:

  • New regulations have allowed large property owners to work together with retailers and put forward rent relief schemes.
  • However, BusinessInsider reports that there is currently no official announcement on rental holidays

3. Small and medium-sized businesses

  • The government has established the Debt Relief Finance Scheme to help small businesses with funding
  • The state has also launched the Business Growth and Resilience Facilities which aims to help small companies take advantage of supply opportunities relating to the coronavirus.
  • A delay in employee tax payments has been announced, with businesses allowed to pay 15% after 6 months and then 50% by the end of the current tax year. The balance is expected by 30 September 2021 and this is only for companies with a turnover of less than R50 million per annum

4. For citizens:

  • South African banks have announced varying options to help clients including payment holidays on qualifying loans
  • Momentum short-insurance clients can obtain early cashback payments for no-claims and safety bonuses
  • MiWay clients will receive an automatic 10% reduction on car insurance premiums during April

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Source: Briefly.co.za

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