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Company tax rate cut

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DPC
Occasional Contributor
Which companies would run hardestin reaction to a cut in the company tax rate next week? All thoughts would be welcome.
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4 REPLIES 4
Super Contributor
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Firstly companies with PE below 15. Secondly companies that pay dividends. Thirdly companies that have their BEE in position. Reasons: I think the reduction will come in the form of either a reduction in STC or scrapping it altogether. Remember most BEE deals is funded and dividends is a way of paying for the related finance costs. Thus to promote,sustain and grow the BEE program it makes sense to implement enabling financing structures and I believe the best way the Gov. can assist is by scrapping STC. The ruling party is after all serious about their friends making money through BEE transactions. Which BEE entity wants to be part of a loss making company? The scrapping of STC will also be a growth booster for all companies but specially the ones paying dividends.
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Super Contributor
and what is your call on SASOL, will there be windfall tax? so do you think the budget will actually make SASOL surge instead of plummet? that is the big question.
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Highlighted
Super Contributor
Hello Willem... your comments about scrapping STC tax are very encouraging. How confident are you that such a move is immenent ??
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