Cape Town \u2013 Finance Minister, Pravin Gordhan, today announced various tax incentives for businesses particularly small and micro enterprises.<\/p>\n
Gordhan also announced plans to overhaul two failed tax incentives in a bid to make them more attractive to businesses.<\/p>\n
Presenting his Budget Speech in Parliament, Gordhan also introduced various tax proposals for businesses, which will help boost job creation. These include changes to the turnover tax for micro enterprises.<\/p>\n
The turnover tax for micro enterprises with an annual turnover of up to R1 million will be adjusted so that tax will be payable only if turnover exceeds R150 000 a year. This takes effect from March 1. The rate structure will also be reviewed by the National Treasury.<\/p>\n
Micro enterprises that register for Value-added Tax (VAT) will no longer be barred from registering for turnover tax. This takes effect from 1 March 2012.<\/p>\n
A dividends tax will take effect on 1 April 2012, replacing the secondary tax on companies (STC).<\/p>\n
The National Treasury believes that doing away with secondary tax on companies will correct the impression that a tax on dividends is another tax on businesses, as the new tax will be a tax on individuals and non-resident shareholders, rather than on the business itself as under STC.<\/p>\n
The learnership tax incentive, designed to support youth employment, will expire in September 2011, but Gordhan said the government proposed to extend this for a further five years, subject to an analysis of its effectiveness with all stakeholders.<\/p>\n
The government also proposes to streamline the current research and development tax incentive by introducing an approval process by the Department of Science and Technology before a taxpayer can claim the incentive, with the aim of limiting opportunities for retrospective reclassification of spending.<\/p>\n
Another incentive to be overhauled would be the venture capital tax incentive, which was introduced into the Income Tax Act in 2009 but had seen a \u201cpoor response\u201d from those looking to set up venture capital companies to doll out the incentive.<\/p>\n
\u201cThe approach will be refined so as to facilitate greater access to equity finance by small and medium businesses and junior mining companies,\u201d he said.<\/p>\n
He said consideration would be given to expanding such incentives for labour-intensive projects in Industrial Development Zones (IDZs). \u2013 BuaNews<\/p>\n","protected":false},"excerpt":{"rendered":"
Cape Town \u2013 Finance Minister, Pravin Gordhan, today announced various tax incentives for businesses particularly small and micro enterprises. Gordhan also announced plans to overhaul two failed tax incentives in a bid to make them more attractive to businesses. Presenting his Budget Speech in Parliament, Gordhan also introduced various tax proposals for businesses, which will […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-12","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/www.thebizsense.com\/za\/wp-json\/wp\/v2\/posts\/12","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thebizsense.com\/za\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thebizsense.com\/za\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thebizsense.com\/za\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thebizsense.com\/za\/wp-json\/wp\/v2\/comments?post=12"}],"version-history":[{"count":1,"href":"https:\/\/www.thebizsense.com\/za\/wp-json\/wp\/v2\/posts\/12\/revisions"}],"predecessor-version":[{"id":13,"href":"https:\/\/www.thebizsense.com\/za\/wp-json\/wp\/v2\/posts\/12\/revisions\/13"}],"wp:attachment":[{"href":"https:\/\/www.thebizsense.com\/za\/wp-json\/wp\/v2\/media?parent=12"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thebizsense.com\/za\/wp-json\/wp\/v2\/categories?post=12"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thebizsense.com\/za\/wp-json\/wp\/v2\/tags?post=12"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}