S6 of the ETI Act states that a qualifying employee should not be older than 29 years at the end of any month in respect of which the ETI is claimed. My question is if the employee turned 30 after the payroll end date( Payroll end date 25th of month and e
Important:
This answer is based on tax law year ending 28 February 2017.
Answer:
In terms of section 6(a)(1), an “employee is a qualifying employee if the employee is not less than 18 years old and not more than 29 years old at the end of any month in respect of which the employment tax incentive is claimed”.
Whilst this is not really a tax related request, we submit that “at the end of any month” would include the last day of the month. It is not the “payroll end date”. SARS agrees with this when they say that an “employee will therefore be a “qualifying employee” in the month that the employee turns 18 years old and will cease to be a “qualifying employee” in the month in which the employee turns 30 years old.”