As a financial professional at a large South African retail company, you know the increasing pressure of rising electricity costs on your bottom line.
Now is the time to act and take advantage of the government’s generous tax incentive for renewable energy investments.
But time is running out!
The deadline to qualify for the 125% tax deduction is February 28, 2025.
Some highlights of the incentive:
- Businesses will be able to reduce their taxable income by 125% of the cost of renewable energy assets used for electricity generation
- The incentive will only be available for investments brought into use for the first time between 1 March 2023 and 28 February 2025
- The deduction applies to all renewable energy projects
- There is no threshold on the generation capacity size of the projects that qualify
How the incentive works
The deduction will reduce tax liability for businesses with a positive taxable income. For example, a renewable energy investment of R1 million would qualify for a deduction of R1.25 million against taxable income.
Using the current corporate tax rate (27%), this deduction could reduce the corporate income tax liability of a company by R337,500 in the first year.
Drensky offers comprehensive renewable energy solutions tailored to your specific needs.
Our expert team can help you:
- Reduce electricity costs significantly
- Increase profitability
- Enhance sustainability
- Maximise tax benefits
On top of the 125% tax deduction, Drensky is offering an incentive for companies that purchase one of our renewable energy products.
Take advantage of this opportunity to secure a brighter future for your company.
CONTACT US today to schedule a consultation and learn how Drensky can help you achieve your renewable energy goals.
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