Page 7 - Companies & Dividend Tax
P. 7

COMPANIES & CLOSE CORPORATIONS



            SBC – Specific principles









            • Section 12E(1): manufacturing plant and machinery

                (brought into use for the first time by the taxpayer)

                written off 100% in first year of use


            • Section 12E(1A): Non-manufacturing assets written off
                50/30/20%


            • Do not apportion for part of a year, (taxpayer may elect

                write off in terms of section 11(e))


            • Otherwise normal tax principles apply


            • Method of payment of normal tax - Provisional tax and

                assessment


            • Dividends paid subject to 20% Dividend Tax


            • Normal capital gains tax principles apply






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