The Treasury plans to tighten up the tax incentives granted to companies which operate from special economic zones (SEZs), as well as for investments in venture-capital companies.

An amendment to section 12R of the Income Tax Act has been proposed in the draft Taxation Laws Amendment Bill that will allow qualifying SEZ companies to qualify for the 15% tax rate for only 20% of the business conducted with connected, SA-based firms. Any business with connected companies conducting more than 20% of their business will be subject to the normal corporate tax rate in SA of 28%...

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