Sunday, January 29, 2023
  • About
  • Advertise
  • Privacy Policy
  • Cookie Policy
  • Contact
  • Subscribe
  • E-edition
  • Login
  • Register
  • Home
  • News
  • Economy
  • Columns
  • Companies & Markets
  • In Business With
  • Lifestyle
    • Motoring
  • Sports
    Debswana sponsors BFA’s National First Division League with P3.9m 

    Debswana sponsors BFA’s National First Division League with P3.9m 

    Ditlhokwe Tipped to Excel at Kaizer Chiefs

    Ditlhokwe Tipped to Excel at Kaizer Chiefs

    BCF Aims to Resuscitate Chess this Year

    BCF Aims to Resuscitate Chess this Year

    Tebogo’s Move to US on Hold

    “Don’t Panic,” Tebogo is advised as He Transits to Senior Level

    NSAs decry Absence of School Sports 

    NSAs decry Absence of School Sports 

    BCF fails to send Team to Continental Schools Chess Champs

    BCF fails to send Team to Continental Schools Chess Champs

    Trending Tags

    • Subscribe
    No Result
    View All Result
    • Home
    • News
    • Economy
    • Columns
    • Companies & Markets
    • In Business With
    • Lifestyle
      • Motoring
    • Sports
      Debswana sponsors BFA’s National First Division League with P3.9m 

      Debswana sponsors BFA’s National First Division League with P3.9m 

      Ditlhokwe Tipped to Excel at Kaizer Chiefs

      Ditlhokwe Tipped to Excel at Kaizer Chiefs

      BCF Aims to Resuscitate Chess this Year

      BCF Aims to Resuscitate Chess this Year

      Tebogo’s Move to US on Hold

      “Don’t Panic,” Tebogo is advised as He Transits to Senior Level

      NSAs decry Absence of School Sports 

      NSAs decry Absence of School Sports 

      BCF fails to send Team to Continental Schools Chess Champs

      BCF fails to send Team to Continental Schools Chess Champs

      Trending Tags

      • Subscribe
      No Result
      View All Result
      The Business Weekly & Review
      No Result
      View All Result
      Home Columns Tax & Your Pockets

      No transfer duty on Special Economic Zone operators

      mm by Jonathan Hore & Gavin Mashiri Jonathan Hore & Gavin Mashiri
      January 17, 2023
      in Tax & Your Pockets
      Reading Time: 3 mins read
      0
      Non – citizens , trusts & 5 % transfer duty
      Share on FacebookShare on Twitter

      Special Economic Zones (SEZ) are generally created to attract investments, create jobs and boost exports.

      Additionally, these special zones also provide business-friendly regulations with respect to land access. In this respect, it is vital that taxpayers operating in SEZ understand that they are able to acquire immovable property without worrying about Transfer Duty (TD).

      Simply put, SEZ operators are exempt from paying TD on the acquisition of land or buildings. However, the exemption is subject to a few strings attached. Keep on reading and allow us to help you understand this special exemption and how you can take advantage of the same. In this article, words importing the masculine shall be deemed to include the feminine.

      Enter SEZ

      A SEZ is basically an area in which the business and trade laws are different from the rest of the country. As alluded to above, these zones are established to foster economic growth and development by allowing business operators and investors to leverage on tax incentives. In other words, SEZ is basically a special designated region that is subject to different fiscal regulations from the rest of the country. Such regulations are usually favourable to business operators or investors.

      To be precise, the Income Tax Act defines a SEZ as ‘an area of land established as such under section 29 of the Special Economic Zones Act being a geographical demarcation with special regulatory provisions…’  and such companies pay corporate tax at 5% for the first 10 years and 10% thereafter. The Act further specifies that the legal and tax regulations differ ‘in a more liberal way’ than those which apply to the rest of the country. Sir Seretse Khama International Airport, Fairgrounds, Pandamatenga, Palapye and Lobatse are some of the areas already declared as SEZs. Having established the characteristics of what the SEZ entails, let us now turn to the Transfer Duty incentives.

      Enter Transfer Duty

      Generally, Transfer Duty is levied on any immovable property that is sold or transferred. The Duty is borne by the recipient or acquirer of the property. However, the Transfer Duty Act was amended to include an exemption of payment of transfer duty for SEZ operators. In this regard it is imperative to pay strict attention to the qualifying conditions required for an SEZ operator to enjoy the exemption. In verbatim the amendment states that, ‘where a person, being a holder of a licence under the Special Economic Zones Act, purchases or acquires immovable property for the purpose of operating or carrying on any business activity in a Special Economic Zones as may be approved in the licence, the transfer of such immovable property shall be made without the payment of transfer duty.

      As alluded to above, the exemption of Transfer Duty comes along with a few conditions. Accordingly, the exemption applies if a) the acquirer of the immovable property holds a SEZ operating licence, b) the acquired land or building should be for conducting operations as prescribed by the corresponding SEZ licence and c) the land or building should be situated in the SEZ. As an example, this technically means that the exemption does not apply to a person who is licenced to manufacture shoes in a SEZ but acquires a building to conduct retail operations.

      Conclusion

      Essentially, business operators or investors who are licensed and operating in SEZs can acquire land and buildings by whatever means without paying TD. However, the acquired immovable property should strictly be for conducting operations as per the SEZ license.


      Well folks, we hope that was insightful. As us the two Yours Truly say goodbye, remember to religiously pay your taxes. If you want to consult, join our free Tax WhatsApp group or to know about our 9 Tax e-books, send us a text on the +267 71 81 5836. You can read more tax articles on our website, www.aupracontax.co.bw under the ‘Tax articles’ tab.

      Navigation

      • Home
      • News
      • Economy
      • Columns
      • Companies & Markets
      • In Business With
      • Lifestyle
        • Motoring
      • Sports
      • Subscribe

      Recent News

      • Debswana sponsors BFA’s National First Division League with P3.9m 
      • January 27 2023 Edition
      • Proposed Law to Tighten the Screws on Banks 
      • David Van Niekerk appeals after losing interdiction case 
      • Ditlhokwe Tipped to Excel at Kaizer Chiefs

      Site

      • About
      • Advertise
      • Privacy Policy
      • Cookie Policy
      • Contact
      • Subscribe
      • E-edition

      © 2021 The Business Weekly & Review. All Rights Reserved.

      No Result
      View All Result
      • Home
      • News
      • Economy
      • Columns
      • Companies & Markets
      • In Business With
      • Lifestyle
        • Motoring
      • Sports
      • Subscribe

      © 2021 The Business Weekly & Review. All Rights Reserved.

      Welcome Back!

      Login to your account below

      Forgotten Password? Sign Up

      Create New Account!

      Fill the forms below to register

      All fields are required. Log In

      Retrieve your password

      Please enter your username or email address to reset your password.

      Log In
      This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
      Are you sure want to unlock this post?
      Unlock left : 0
      Are you sure want to cancel subscription?