Page 41 - Nexia SAB&T Business in South Africa Guide 2024

Capital Incentive Allowances
The Capital Incentive Allowance is a reduction in the amount of tax payable,
offered as an incentive for investment in large-scale projects. A certain
percentage of the capital asset’s cost is allowed as capital allowance during
the accounting period in which it was purchased. This amount is greater than
the depreciation charge on the asset during that period. Examples of capital
incentive allowances include urban development zone allowances, learnership
allowances and wear and tear allowances.
Employee Tax
Where a subsidiary or branch of foreign-owned company hires employees in SA,
it must register as an employer with SARS.

Green Taxes
Examples of Green Taxes in SA include: the carbon dioxide vehicle emissions
tax, plastic bag levy, tyre levy and incandescent light bulb levy. Environmental
deductions/allowances as well as tax allowances for energy efficiency savings
also apply. Carbon Tax was implemented wef 1 June 2019.
Customs Duties
An importer/exporter has to register with SARS to obtain a customs code
number. Goods imported into, or exported from, SA are liable for VAT and
customs duty, subject to the availability of rebates and refunds. Direct exports
(where the South African seller supplies the goods) are subject to VAT at 0% and
indirect exports (where for example the client of a South African seller arranges
for the delivery of goods to the client’s customer in the country to which the
goods are exported) are subject to VAT at 15%.
If goods are imported from one of the countries falling within the Common
Customs Area (Namibia, Botswana, Lesotho and Swaziland) they are exempt
from custom duty but not VAT.

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