Doesn't it seem a bit much tax rate wise for South Africa to have taxes at 40% and vat etc? I know for some businesses it makes sense, 'relatively' cheap land and labor but with BEE which is very confusing to me looking through wiki. Seems a bit burdensome.

It all seems to drive exports at below cost to insure profit shifting, because otherwise it defeats the purpose of being in SA.

Even excise taxes for wine are a few multiples higher than here in the States.

I know this might sound crude but aren't emerging markets supposed to be Lower tax, cheaper service areas.

Hypothetically a successful winery would pay 40% income + 14% vat + around 80c to a $1 on a liter of wine. Seems a bit hefty especially if its large and has to give up 25-26% equity. Theoretically this seems like 96% taxation yes I know but it does look like a joke to me. So lets say you sell a liter for $10 and make $3 you are then down to $1.38 after vat and income assuming the excise is already in there somewhere. After partnership you get to keep 1.02-1.03 dollars. Figuring 7 years for first grapes they will be truly sour. Return on investment seems absurd, unless you get a ready to go winery someone abandoned. I guess everyone is just filtering everything through multiple jurisdictional and corporate layers to not be robbed.

At least in other countries you could simply bribe the officials instead of going through this stupidity.