Dreaded tax law on interest relaxed

Hore
Hore

On July 26, 2019, the Minister of Finance & Economic Development published the much-anticipated relaxation of the Income Tax Act provisions which restricted 100% deductions of interest expenses for companies, much to the amusement of the corporate world.

The proposed amendment, published through Income Tax Amendment Bill 2019, comes after rigorous lobbying by business for the amendment of the recently introduced thin capitalisation law which was enacted on December 31, 2018.

The effect of the December 2018 law was to effectively limit interest expenses incurred by corporates as from July 1, 2019 as tax deductions. Previously, every company could claim 100% of its interest expense but the law limited it to 30% of what is known as Tax EBITDA, effectively increasing corporate tax.

Editor's Comment
Congratulations Anicia Gaothuse!

The contest had 10 beautiful young girls as finalists and unfortunately only one could wear the crown.The judges picked Anicia Gaothuse. To all those who feel their contestant should have won ahead of Anicia for whatever reason, hardly; the judges found Anicia to be the best among the best, so desist from disrespecting our newly crowned queen on social media or anywhere else, for that matter! Each of the 10 beautiful young women had supporters...

Have a Story? Send Us a tip
arrow up