The Minister of Finance has designated the following 6 Special Economic Zones in Government Gazette 41759, effective 1 August 2018:
• Coega Special Economic Zone (COE)
• Dube Tradeport Special Economic Zone (DTP)
• East London Special Economic Zone (EAL)
• Maluti-a-Phofung Special Economic Zone (MAP)
• Saldanha Bay Special Economic Zone (SLB)
• Richards Bay Special Economic Zone (RIB)
Click here to view Government Gazette 41759
If an employee is employed by an employer operating through a fixed place of business located within a Special Economic Zone (designated by notice by the Minister of Finance in the Gazette) and that employee renders services to that employer mainly within that Special Economic Zone, then the age qualifying criteria (aged from 18 to 29 years old on the last day of the calendar month), will not apply and will be replaced with the approved Special Economic Zone.
In the payroll application, the "age test" will be ignored when determining if an employee qualifies for ETI. All the other qualifying criteria remains the same and will still apply in order to determine if the employee is a qualifying employee for ETI
What should be done on the payroll?
Only as from 1 August 2018 -
- Create the Special Economic Zone (SEZ) code within the payroll application (Payroll > Definitions > System Description Codes > ETI Codes) as per the list below (defined in SARS Business Requirement Specification Version 17.2 (Appendix E)):
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- Link all applicable employee records who fall within the Special Economic Zone, to the applicable SEZ code. This linking can be done per employee on the Employee Information Screen (IS) Employment Tax Incentive tab, or can be done by importing a CSV file using the Flexi Fixed Import function)
- Reconcile the ETI hours and qualifying employees, by using the ETI Reports within the application
Take note:
- Do not link the employees before August 2018, as this can result to invalid ETI calculations (age will be ignored for employees younger than 18 and older than 29, when calculating incentive value)
- Do not create the Special Economic Zone ZAR or link employees to this SEZ code.