The first concession is to be taxed on the basis of a progressive rate system, viz SBCs tax is calculated at a rate of 0% on the first R43 000 of taxable income, 10% on taxable income in excess of R43 000 but not exceeding R300 000 and thereafter at a rate of 29% for every R1 in excess of R300 000.
The second concession is the immediate write-off of all plant or machinery used in a process of manufacture or similar process in the tax year it is brought into use for the first time. Furthermore, an accelerated write-off allowance for depreciable assets (other than manufacturing assets) acquired on or after 1 April 2005 is available at 50% of the cost of that asset in the tax year during which that asset was brought into use for the first time, 30% in the second year and 20% in the third year. [See
also under Special Allowances, par (n)]
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