There's growing confidence in business outlook despite difficult conditions, says Fin24
That's because this week's Budget Speech acknowledged that growing the economy means expanding business activity.
'We recognise the key role that private companies play in our economy… as government, we wish to encourage businesses to keep investing in our economy, and seize the opportunities around us,' said Finance Minister Pravin Gordhan.
One way businesses will benefit is from simplified tax requirements for small business.
But the topic that's received the most interest is the Special Economic Zone (SEZ) programme.
Here's how your business will benefit from the Special Economic Zone programme!
Announced last year, the Special Economic Zone programme has received funding to build world class industrial parks.
Now, Gordhan says discussions are being held with Trade and Industry Minister Rob Davies on specific tax incentives
to enhance this initiative, the Business Day's BDLive
So your business will get further tax breaks just by being based in one of the Special Economic Zone!
s will stimulate industrialisation outside of the country's main urban areas of Cape Town, Gauteng, Durban-Pietermaritzburg, East London and Port Elizabeth, says SouthAfrica.Info
If you can't wait for the Special Economic Zone programme to be finalised, you can get special tax incentives for basing your business in an industrial development zone!
project is seen as a way to improve on the concept of industrial development zones (IDZ
s), explains the Trade Law Centre
An IDZ is a purpose-built industrial estate linked to an international airport or seaport that's tailored for the manufacturing and storage of goods.
So it's a great area to base your business if you're involved in imports and exports. Added to this, investors in the zone have certain rights, in addition to tax incentives such as customs duty and Vat relief.
The IDZ programme led to the establishment of five zones – Mafikeng, OR Tambo International Airport, Richards Bay, East London and Coega.
So if you're looking at expanding your business or moving to new premises, look at SEZ and IDZ areas to benefit from special tax incentives.
To find out more about Industrial development zones and the tax and Vat breaks associated with it get your hands on the Practical Vat Loose Leaf. In the Practical Vat Loose Leaf we've got a dedicated chapter on Industrial development zones. In it you'll discover:
What's an industrial development zone and a customs controlled area?
9 benefits for having your business in an industrial development zone
Checklist#1: Do you meet these conditions for your wear-and-tear allowance claim?
Checklist#2: How best to claim your wear-and-tear allowance
Where's the industrial development zone in South Africa?
What are the Vat implications in an industrial development zone and a customs controlled area?
Checklist#3: Applying Vat to vendors in industrial development zones
Get your Practical Vat Loose Leaf here...