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Minister of Housing LN Sisulu on proposals for tax incentives for affordable and low cost housing as per Revenue Laws Amendment Bill
21 October 2008
Minister of Housing Lindiwe Sisulu welcomes the proposed tax incentives for employers releasing affordable and low cost housing to workers in terms of proposals in the Revenue Laws Amendment Bill, tabled in Parliament today.
According to the proposals, an employer would qualify for an annual write-off if a property is released for sale to an employee, who obtains an interest free loan from the company. In addition, the already existing tax incentives applicable to an employer’s rental units are updated. These tax incentive proposals peg property values at R200 000 for houses (excluding land and bulk infrastructure) and R250 000 for flats.
The proposed tax incentives, particularly on the sale of affordable and low cost housing to employees, represent a potentially exiting new avenue in making housing accessible to more and more South Africans.
It dovetails other initiatives by housing like the R42 billion rand commitment from the banking sector to secure mortgages in the affordable housing market and the facilitation of other innovative access to housing finance through, for example, the National Housing Finance Corporation.
For further information contact:
Media liaison officer
Marianne Merten
Tel: (021)466 7609
Cell: 078 801 9069
Issued by: Department of Housing
21 October 2008