The 2018 budget includes proposals to increase the value added tax (VAT) rate, introduce a carbon tax, increase the fuel tax, and introduce a “sugar tax.” These proposals would affect all areas of the economy. But what relief would be available for businesses?
The budget includes allocations for industrialisation incentives, an economic competitiveness and support package, and allocations for special economic zones (SEZs). The majority of incentives require that applications be submitted before any costs for projects are incurred—even before any purchase orders are placed. While tax incentives for business were not specifically addressed in the budget speech, (other than SEZs that already exist), the Annexures to the 2018/19 budget set out the government’s medium term plan for incentivising the economy for growth and job creation, albeit very vaguely.
Read a February 2018 report [PDF 101 KB] prepared by the KPMG member firm in South Africa
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