The Companies Income Tax Act (Amendment) Bill 2015 which seeks to increase the incentives available to companies that invest in public infrastructure in the course of their business has been passed by the National Assembly. In addition, the eligibility threshold will be reduced to enable more companies qualify.
It is not clear how well these proposed changes are based on empirical data given the very little uptake by companies since the incentive was introduced decades ago. The expected benefit from the incentive should also be measured against the associated cost and revenue loss. It is also important to ensure sufficient coordination among government agencies to align different initiatives including the ongoing comprehensive review of tax incentive regime.
Read our alert below for further insights. Download PwC Tax Alert_ CITA to grant more incentives_Nov 2016
Also passed by the National Assembly is the VAT Amendment Bill 2015. Read our earlier alert on the proposed VAT changes here.
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