Trade requirement

The building must be within a UDZ and must be used solely by the taxpayer for purposes of trade. There is no one test as to when it can be said that a taxpayer has commenced to carry on a trade and each determination will depend on the specific facts and circumstances. A taxpayer that ceases to trade will no longer be able to claim the UDZ incentive on the property from the year following the year of assessment in which the trading activities cease. Furthermore, if a taxpayer does not claim the deduction in the year that trading commences or in subsequent years but wants to start claiming in, for example, year three, the deduction for the first three years will be forfeited. In these cases, only the remaining portions of the deduction will be available to the taxpayer.

Last Updated: 25/09/2019 3:13 PM     print this page
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