Got any suggestions for the improvement of small business tax aids?
On 17 July 2013, our Minister of Finance publicised the names of the members of the Davis Tax Committee (DTC) - a committee that considers the objectives of the National Development Plan and then considers how we can make changes to tax laws and concessions, to facilitate the achievement of those objectives. Here's what it means for your small business...
Entrepreneurship is seen as a key driver in the national development plan, since small businesses have the potential to create thousands of jobs, directly reducing the high rate of unemployment (especially among the youth!). This is why the DTC is asking for your contributions, in the form of suggestions and ideas for methods to reduce the tax burden of small businesses.
If you're a small business, then you know where taxes are hitting you hardest... You can email your contributions to firstname.lastname@example.org
In the meanwhile, here's a little tax concession you'll be happy to hear about!
How to get a little ʻfreeʼ advertising, thanks to this business tax deduction...
According to the experts at the Practical Tax Loose Leaf,
advertising expenditure is generally deductible provided you incur it in the production of income and if it isn't of a capital nature. Certain methods of advertising can be of a capital nature and aren't deductible. Consider these…
Television and radio:
The production costs of an advertisement which is to be screened over a prolonged period is of a capital nature and not deductible. On the other hand, the costs may be deductible where the nature of the product is such that only a few screenings are made over a short period. In any event, the actual screening costs of such advertisements are deductible.
Advertising structures that create an enduring benefit or are of a permanent nature may be regarded as being of a capital nature, e.g. a lighting system in a display window that is of a permanent nature, permanent adverts on billboards, erection of a model or a 'dummy' house for the display of goods at the show grounds which is of permanent nature, etc.
Take advantage of this tax deduction to save money for your business. And remember, there are a handful of other such business tax deductions
that you could exploit too!
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