Real Estate Investor Magazine South Africa July 2015 | Page 44

FINANCE

Utilising The Johannesburg UDZ
Tax incentives can boost commercial buy-to-let market
BY MEGAN DIENER

N

ational Treasury extended the Urban
Development Zone (UDZ) tax incentive last
year until March 2020.
This incentive (which falls under section 13 quat
of the Income Tax Act - No. 58 of 1962) regenerates
urban areas and business districts experiencing urban
decay by boosting capital investment in buildings in
UDZ areas.
Developers and investors can capitalise on this tax
write-off for construction or refurbishment costs of
commercial properties in UDZ zones, such as in both
Kempton Park and Germiston in the Ekurhuleni
Metropolitan Municipality in Johannesburg.
According to the Government Gazette, the
demarcated borders of the Kempton Park UDZ are
from the corner of Kempton Road and Gottfried

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JULY 2015 SA Real Estate Investor

Avenue, along Kempton Road in a western direction
to Monument Road, along Monument Road in a
northerly direction up to CR Swart Drive, west along
CR Swart Drive up to Kelvin Street, south along
Kelvin Street for about 450m, east for about 320m
up to the railway line, south along the railway line up
to Albatross Street, northeast along Albatross Street
and Gottfried Avenue and back up again to Kempton
Road.
The demarcated borders for the Germiston UDZ
starts from the corner of Power Street and End
Street, along Power Street in an easterly direction up
to Railway Street, south-east along Railway Street
and Labassee Road up to Van Lingen Street, southe