Debt warehousing and reduced rate of interest for outstanding ‘non-COVID-19’ debts
In response to COVID-19, the Government announced the Jobs Stimulus Package. The package included some measures to assist businesses in dealing with their tax debts.
This measure has become all the more important in recent weeks (and days due to increased restrictions). If you business is force to close temporarily due to Covid19 restriction take a read of the information below and the attached booklet.
Debt warehousing of certain PAYE (Employer) and VAT debts
‘Debt Warehousing’ is an arrangement whereby VAT and PAYE (Employer) liabilities incurred during the period of restricted trading caused by COVID-19 will be ‘parked’ on an interest-free basis, subject to certain conditions. Liabilities accrued up to the end of the first bi-monthly VAT period after a business has resumed trading are eligible for warehousing for a period of 12 months.
Reduced interest rate for outstanding ‘non-COVID-19’ tax debts
The Government has also announced a reduced interest rate of 3% per annum to apply to tax debts not associated with COVID-19, provided the taxpayers concerned enter into a phased payment agreement with the Collector-General before 31 October 2020. The 3% rate represents a significant reduction from standard interest rates on late payment of taxes of 8% and 10% per annum.
Find out all the details here