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HIGHER DENSITY
This is not an automatic rebate.
The City offers property owners and developers incentives for higher density residential buildings. Developers of higher density residential properties with 70 dwelling units or more per hectare qualify for an additional 20 percent rebate.
Sectional title owners living on these properties also qualify. They receive a 20 percent rebate for sectional title and a 20 percent rebate for the high density condition.
Other high density residential buildings not under sectional title also qualify, provided they are zoned for residential and density exceeds 70 units per hectare.
INNER CITY
This is not an automatic rebate.
To encourage mixed land uses and to make the inner city a vibrant place, there is a rates rebate on offer. A 40 percent rebate on rates is allowed where property has been re-developed to allow for 80 percent residential and 20 percent commercial use, in the inner city.
Urban Renewal Tax Incentive
This incentive comes in the form of an accelerated depreciation allowance in terms of the Income Tax Act.
- A newly constructed building or a part thereof receives deductions amounting to 20 percent of the investment in the first year, and 5 percent in each of the subsequent 16 years;
- For a refurbished building or part thereof, the deduction is a five-year straight line depreciation of 20 percent of the investment in each of the five-year periods, upon completion of the development.
For more information on the Urban Development Zone, which allows one to qualify for this tax incentive, click here.
Rates rebates for higher density and Inner City
To apply for these rates rebates send your application to:
Rates Policy Implementation
Rates and Taxes
PO Box 1450
Johannesburg
2000
Documentation required:
- Proof of approval of building plans; and
- Certificate of Occupancy.
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