• Privatisation tweet

    A probe into a tweet by Tesla chairperson and CEO Elon Musk may open pandora's box.

  • State Capture Inquiry

    Nedbank says ex-Mining Minister Mosebenzi Zwane sought to keep Gupta accounts open.

  • Tighter rules

    'Corporate scandals, rumours and innuendo' has prompted the JSE to plan new listing rules.

Loading...

Make the most of govt incentives

Aug 01 2014 11:35
Fin24

Pretoria - The difficulties most companies face in trying to make use of government incentives are the lengthy administration process and following the correct procedures, according to Brian Verwey of BCE Consulting, a customs and incentive service provider.

BCE has, therefore, opened a specialised business unit to provide SA businesses with advice on employment tax incentives (ETI).
 
“As a result of the strong demand for incentive support, we took the decision to invest in a dedicated businesss unit with the core focus on employment incentives”, said Verwey.

BCE assists importers, manufacturers and component suppliers in obtaining the maximum benefit from current government incentive programmes.

“We are focused on extracting cash benefits for our clients from available     refund and incentive opportunities offered by the department of trade and industry (dti)," said Verwey.

“The ETI is an incentive that was introduced by government to encourage employers to hire young unskilled labor. It allows for all races and genders and uses basic criteria to determine whether you qualify for immediate monthly cash benefits.”
 
According to Francois Truter, chief director of the dti's incentive development administration division (Idad), ETI differ from other incentives since there is no application process.

It is a self-assessment system, companies receive the benefit each month, there is no waiting and companies or business owners need only pay the balance of the Paye liability after deducting the credit.
 
If companies never claimed, the claim would be allowed to be backdated to the date of employment, as far back as January 1 2014.

Any unclaimed amounts per employee per month are rolled forward and companies will not pay tax or Vat on the credit or “cash back” they receive, said Verwey.

He warned that it is important to get the self-assessment offered right as the SA Revenue Service (Sars) will impose substantial penalties for getting it wrong as it wants to prevent business owners from abusing the incentive.

- Fin24

Share your experience of setting up a business or simply ask a question. Our business panel can put you on the right path.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

dti  |  entrepreneurs  |  small business
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Did you find Markus Jooste's testimony convincing?

Previous results · Suggest a vote

Loading...