Claiming back the employee tax incentive (ETI)

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Have you hired new employees between 18 and 29 years of age? Government introduced the ETI to facilitate the employment of youth and to create opportunities for school leavers. The scheme is effective from 1 January 2014 to 31 December 2016. How does it work?

  • If you have newly employed staff, employed from or after 1 October 2013, within the age bracket of 18 – 29 years and they have a valid South African Identity.
  • You can claim 50% up to a maximum of R1 000 per month per such an employee for the first 12 months and thereafter 25%, up to a maximum of R500 per month per such an employee within the scheme period.
  • However, the employee may not be a domestic not “connected to” to employer in some form or another.

What should I do?

1. Make sure –

1.1 you are registered for PAYE as an employer;
1.2 you are not a public entity listed in Schedule 2 or 3 of the Public Finance Management Act, and 
1.3 you have not been disqualified by the Minister of Finance.

2. Complete the SARS EMP201 which has been amended to include claiming the ETI
2.1 By listing the qualifying employees for the month
2.2 And following the calculation for the incentive per employee.

It is as easy as that. If you require assistance, please do not hesitate to contact us.