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In his State of the Nation address, President Ramaphosa announced that South Africa would be looking into the possibility of creating more special economic zones.
A special economic zone is a distinct demarcated area that has been earmarked for economic development and which provides tax incentives to attract investment to the area. The tax incentives are available to certain types of companies operating within that special economic zone (SEZ).
The main tax benefit available to a qualifying company within a special economic zone is the reduced corporate tax rate from 28% (the standard corporate tax rate) to 15%.
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