It is not only tax and financial advisors who have to stay informed on what the Minister of Finance’s plans are for tax collection and government spending.
The government budget is something that affects all businesses and is therefore important to a range of practitioners offering different forms of business advising services. Tax practitioners are, of course, interested in the details of adjustments and new measures that may be announced in the annual budget, but generalist business advisors also need to stay informed – be it at a less detailed level.
What is it that business advisors should note from the priorities set by Finance Minister Tito Mboweni in the budget speech he delivered on 20 February 2019 in Parliament?
This is the focus on the next webinar delivered by the Institute of Business Advisors Southern Africa (IBASA) and the Entrepreneurial Planning Institute (EPI) on 14 March 2019.
The webinar panellists are Mahomed Kamdar, who works as Tax Advisor at the South African Institute of Professional Accountants (SAIPA), and Joseph Tshiwilowilo, who actively provides tax and accounting services to small and growing businesses and also serves as Stakeholder Relationship Executive at IBASA.
“Tax & Other Implications Of Budget 2019 — All you need to know to offer your small business clients up-to-date advice”
No radical shifts in the tax regime were announced in the 2019 budget, with Value Added Tax (VAT) remaining at 15%, and companies tax being unchanged, including the option for more beneficial taxation through graduated tax for “small business corporations”.
There are however some interesting provisions in the budget, that will be covered in detail in the webinar. Commentators have drawn attention to various important provisions for the immediate year ahead and the medium term projection. Below are some observations that are noteworthy for business advisors:
- The incentives schemes offered by the Department of Trade and Industry (the dti) remain an important government business support programme. 8 billion is allocated to industrial incentives in the 2019 budget and it seemingly remains an important strategy through which government wish to stimulate economic growth and job creation.
- Implementation agencies such as the Small Enterprise Finance Agency (SEFA) and the Small Enterprise Development Agency (SEFA) remain the main implementers of government support initiatives aimed at small businesses. It is expected that the SEDA incubation programme will expand significantly with nearly half-a-billion Rand allocated for this purpose.
- A very interesting addition to the small business support landscape is the establishment of a small business and innovation fund. It will be capitalised through annual contributions of which R3.2 billion is allowed for in the medium-term budget covering the three years following this year’s budget. The expectation is that this fund will contribute significantly to the creation of innovative business, aligned to opportunities offered by the unfolding 4th Industrial Revolution.
- From a very practical perspective, the Minister emphasised that the government will be pro-active in reducing the cost of data. Cheaper data will allow small businesses to create new opportunities, leading to economic growth and job creation.
- The strained clothing sector, where smaller business is active, will also receive a boost with an R600 million clothing and textile competitive programme being announced.
- The regulations governing venture capital companies will be revised to prevent abuse of the provisions that are aimed at unlocking capital for startup companies.
- New tax avoidance rules are already in place, covering share buy-backs and dividend stripping.
- A new carbon fuel levy will be introduced in June 2019, adding to the price of petrol and diesel.
Join the next IBASA-EPI Webinar on the implications of Budget 2019:
Tax & Other Implications Of Budget 2019:
All you need to know to offer your small business clients up-to-date advice
14 February 2019
11h30 to 12h45
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