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Income Tax Act, 1962 (Act 58 of 1962)

Tax Holiday Regulations

8. Evaluation, approval and monitoring

 

 

1) Only applications from companies that have not yet commissioned machinery and plant at the time of receipt of the application will be considered for the tax holiday scheme.

 

2) A company that applies for tax holiday status shall provide the board, on application, with a pro forma income statement and pro forma balance sheet prepared in terms of GAAP, wherein all financial information is projected for three years.

 

3) A qualifying company must submit annually to the board-
a) audited financial statements;
b) a certificate, in accordance with Table 2, wherein the auditor certifies that the qualifying company is still carrying on the approved project at the approved locality and is manufacturing the approved products; and
c) written confirmation from the qualifying company's auditor that the human resource remuneration to value added ratio has been calculated in accordance with Table 1 as required in regulation 5(1)(b), (c) and (3).

 

4) The documents required in regulation 8 (3) must be prepared in terms of GAAP and certified by the same auditor contemplated therein.