Business Tax Benefits

Welcome to ACE Solar Energy, where we're committed to helping you thrive in a sustainable future. The 2023 Budget underscored South Africa's urgent need for a reliable electricity supply, as frequent load-shedding plagued the nation throughout the year, reaching severe stages four, five, or six. Research from the Bureau for Economic Research revealed unprecedented levels of load-shedding in the first two months of 2023 compared to the previous four years, with conditions expected to worsen as winter approaches.

In response, the government introduced two crucial tax measures aimed at spurring investment in renewable energy and bolstering electricity generation:

Expanded Business Tax Incentive

Objective: Encourage private sector investment to alleviate the energy crisis.

Benefits:

• Businesses can now claim a 125% deduction on renewable energy assets' costs used for electricity generation.

• The entire deduction can be claimed in the first year, reducing taxable income significantly.

• Applicable to all renewable energy projects without capacity size restrictions.

• Available for assets brought into use between 1 March 2023 and 28 February 2025, incentivizing short-term investments.

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Scenario: A business that invests R1m in renewable energy assets for electricity generation will be able to reduce their taxable income by R1.25m and, at a 27% corporate tax rate, they will be able to reduce their income tax liability by R337 500.00 for this financial year.

​Why Choose ACE Solar Energy?

• Expert Guidance: Navigate complex incentives with our professional advice tailored to maximize returns.

• Compliance Assurance: Ensure eligibility with timely documentation and adherence to guidelines.

These measures not only offer financial advantages but also empower you to contribute to a sustainable energy future. Join ACE Solar Energy today and take the lead in renewable energy investments.

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Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor any loss or damage arising from reliance upon any information herein. Always contact your professional adviser for specific and detailed advice.