News > Tax Law
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 The South African government introduced Section 11D of the Income Tax Act number 58 of 1962 to encourage and incentivise private sector investment towards the research and development of scientific or technological activities. The Act assists in ensuring that research and development activities are conducted within South Africa, and this will ultimately resulting in a positive economic growth. Section 11D of the Act provides for two types of incentives - a 150 percent deduction of operating expenses and accelerated depreciation of any building or part thereof, machinery, plant, implements, utensil or article. |
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 Section 92 of the current Companies Act, 1973, prohibits a company, save in the context of a public offer, from issuing or allotting shares unless they are fully paid up. This position has been altered by the new Companies Act, 2008 (New Companies Act) which is due to become effective on 1 April 2011. Section 40(5) of the New Companies Act provides that: |
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A new breakthrough incentive to encourage scientific and technological research in South Africa has been legislated this week. |
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The firm practises directly in several Southern African countries and through long-established associates in others.
