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Base your import and export business in the right area to benefit from tax incentives!

by , 07 March 2013
It's easy to see why the import and export industry is treated with suspicion. For example, two foreign nationals have just been arrested for trying to bribe a SARS Customs and Border Control Unit team when they were found to be storing around R2 million-worth of counterfeit goods and the contents of a wrongfully cleared shipping container. But it's not all bad news - you can even get a tax incentive from SARS if you base your import and export business in the right area!

Tax and customs-related offences are high at the moment, according to a report released by SARS' Customs and Enforcement teams.
In addition to the two foreign nationals who were arrested for attempted bribery, SARS seized over 96 kilograms of drugs in different interventions in February alone. 
No wonder import and exporters are seen as criminals, when so many go this route.
But you don't have to bribe SARS officials. 
It's easy to ensure your imports and exports are legal.
In fact, SARS could even reward you for basing your import and export business in a specific area.
Here's how to ensure your imports aren't frowned on – you'll even get a tax incentive!
FSP Business says you can reap the tax incentives by setting up your business in a Special Economic Zone.
The Special Economic Zone programme will build world class industrial parks to stimulate industrialisation outside of the country's main urban areas, says SouthAfrica.Info
And the Business Day's BDLive website reports that Trade and Industry Minister Rob Davies will soon announce specific tax incentives to enhance this initiative.
So your business will get further tax breaks just by being based in one of the Special Economic Zones!
These industrial parks are usually located close to international airports and seaports, and are specially tailored for the manufacturing and storage of goods.
That's perfect for import and export businesses, and you also benefit from lower customs duty and Vat charges.
SARS is also more likely to view your import and export business more positively if it's based in one of these areas, instead of hidden away in a dodgy industrial area known for criminal deals.
Give it some thought.
The tax benefits of relocating your import and export business to one of these new Special Economic Zones could be worth the hassle of moving.
Keen to start an import business? Here's why you should look at sugar…
And if you're involved in the import of sugar, now's the perfect time to move to a Special Economic Zone, according to FSP Business.
Because quotas are allocated to registered sugar exporters from 1 April to 31 March of the quota year.
That's in just a few weeks.
Even better, when the availability of sugar is low, the need for customs duty is removed, so you'll make more profits!

If you need more information on exports and imports get your hands on the Practical Vat Loose Leaf. In the Practical Vat Loose Leaf we've got a dedicated chapter on exports.In it you'll discover:
  • Make sure you classify your exports correctly
  • Checklist: Essential documents to keep when you apply the zero-rate of Vat to a direct export
  • 3 top tips to remember about the VAT262, VAT266 and the SAD500 forms E 02/009
  • 5 types of SAD500s – make sure you use the right one, or your entry may be disallowed or delayed
  • Checklists: Additional records you must keep for five years if you use an external transport company
  • Sample letter 1: Request for extension of time allowed
  • All you need to know about indirect exports
  • Checklist: 7 points to help your foreign buyer claim back the Vat he has paid
  • Step-by-step: 3 new procedures you must comply with when movable goods are exported through land border posts
  • Officially designated commercial ports – your foreign clients can claim their Vat refunds here!
  • The lowdown on the Draft Customs Control Bill and Draft Customs Duty Bill
  • Top tips to remember when dealing with a direct export
  • Top tips to remember when dealing with an indirect export
Get the Practical Vat Loose Leaf here...

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