Tax reduction in special zones
Tax incentives will be authorised in certain special economic zones after consultation between the Minister of Finance and the Minister of Trade and industry‚ the Budget Review document revealed on Wednesday (27 February).
It has been proposed that a 15% corporate income tax rate be levied on businesses in such areas. They will also receive an employment incentive allowing for a tax deduction for employment of workers earning less than R60‚000 a year.
In addition‚ there will be an accelerated depreciation allowance for buildings in these areas‚ based on the existing tax regime for urban development zones‚ to encourage developers to invest more in industrial premises.