AMUKELANI CHAUKE

OUR TOWN: Those who bring life and business back to the city will be rewarded  
 
MAJOR tax deductions will be given to all residents of Joburg’s inner city who build or renovate their properties.

This massive new scheme, known as the Urban Development Zone (UDZ) tax incentive, will also include corporate and small investors who own buildings that have degenerated.

They too can restore and renovate their buildings and claim back the money spent from the taxman.

Joburg’s Department of Finance and Economic Development announced the new tax incentive this week, in an effort to reward those who bring life and business back to the heart of the city.

Finance spokesman Lebo Ramoreboli said rebuilding the inner city would attract investment, improve confidence and bring physical and economic improvement to the city.

“It is intended to help the inner city, which is experiencing an economic decline, to regenerate with more businesses — and to create more employment,” she said.

“Only those who improve or build new properties in the UDZ qualify for these tax benefits.”

The UDZ tax incentive scheme will be officially launched at a conference to be hosted by the executive Mayor of Johannesburg, Amos Masondo, from August 18 to August 20 at Joburg’s Parktonian Hotel.

A panel of experts will explain the benefits of the tax incentive.

Ramoreboli said this scheme would diversify the economy and provide more employment opportunities for the city’s residents.

“This scheme will prepare the city for the Joburg 2030 vision, which aims to provide a conducive environment to generate a sustainable economic investment,” she said

Those who qualify for the benefits must be property owners who carry out tasks of the following nature:

•Refurbish property in the UDZ;

• Demolish old buildings and build new structures in their place;

•Renovate, build or extend on existing properties; or

•Apply a new coat of paint on a dwelling or replace glass on broken windows.

The entire amount spent by the property owner can be claimed back over a period of five years. Hence 20% of what property owners spend on their properties can be deducted from their taxable income each year for five years.

Ramoreboli said the scheme would enable owners to increase the value of their properties, thereby improving their earning capacity.

“You get more paying tenants in a nice building, after all,” she said.

“No matter what other sources your income derives from — provided they are legal — you can deduct from those taxable amounts the money spent on building or refurbishment in the UDZ.

“In other words, spend money on property in the UDZ and you’ll pay less tax on all your other earnings, both business and personal,” said Ramoreboli.