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Mazars: Corporate Tax Rate Change
Every month, Mazars Messenger carries a combination of unique Mazars thought leadership, industry information and insights.
While the proposal to reduce corporate tax rates is well received, it should be noted that the interest and loss limitation rules most probably neutralise this effect. Taxpayers, especially in the new investment sector, may still face cash flow constraints through these measures.
In the 2020 Budget Speech, the Minister of Finance announced the reduction in Corporate Income Tax rate from 28% to 27% for years of assessments commencing on or after 1 April 2022. This seems to suggest that Treasury is encouraging growth in the private sector. This would hopefully assist with providing much-needed relief to South Africa’s massive unemployment, not to mention the effects that COVID 19 has had on job losses.
Also see the full March issue of the Mazars Messenger
About Mazars South Africa
Mazars South Africa is a top-six audit, tax and advisory firm by audit fee income, and one of Africa’s largest audit firms. We work with a wide range of clients – from private clients and local businesses to large corporate companies and global organisations.
