Three little-known company tax breaks to help you pay less tax

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Every year, when personal tax season draws near, everyone has numbers on the brain. And while you may be a pro at manoeuvring personal tax loopholes, did you know that there are just as many sneaky tax breaks on the company side of things?

It's never too early to start thinking about how you'll navigate tax season. You'll be surprised how much you can save just with these three useful tax tips!

#1: You can claim the cost of getting a patent, design or copyright

If you bought a patent (or design, copyright, trademark) that is used in the production of your income, you can claim back up to R5 000. Remember, this is a break if you bought the patent, not if you spent money on developing your own.

If the patent cost more than R5 000 to buy, you can claim 5% of the price for patents, inventions and copyrights or 10% of the price paid for designs.

#2: You can claim the market value of equity shares

This is a great little tax break because you can empower your staff as well as score a deduction at once! If your company has a broad-based equity share plan, you can claim the market value of those shares (minus what the employees paid for them.)

#3: You can claim a double allowance for learnerships

You're an employer, so you can claim two types of allowances for learnerships: A commencement allowance and a completion allowance. In the year that you enter a learnership agreement with a learner, you can claim the commencement allowance. In the year, that learner finishes their learnership, you can claim the completion allowance. This means you can claim two allowances for a single learnership!

The content in this article was provided by FSP Business.

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