SA finance minister okays preferential tax for 6 SEZs

Aug 16, 2018: The minister of finance of South Africa Nhlanhla Nene has approved the preferential tax treatment status of six special economic zones (SEZs) according to a release by the Coega Development Corporation (CDC).

Under the Income Tax Act, approval of the tax status was sanctioned for the Coega, Dube Tradeport, East London, Maluti-A-Phofung, Richards Bay and Saldanha Bay SEZs.

CDC brand, marketing and communication head, Ayanda Vilakazi, noted that the approval provided long-awaited relief for companies operating within the SEZs as it enabled them to qualify for tax deductions.

These tax deductions also form part of the suite of incentives offered by the SEZs in order to attract investors into the zones.

“The approval goes a long way in whetting investor appetite and adds to the attractiveness of various SEZs,” stated Vilakazi.