Welcome to the

UDZ TAX INCENTIVE CONFERENCE

Day 1 – 18 Aug 05

URBAN DEVELOPMENT ZONE

TAXATION ALLOWANCES

S 13quat

Urban development allowances • Apply to both new construction and

refurbishment of existing residential/commercial structures after date of notice demarcating zone

• Applies to owners who build/refurbish for own occupation or rental – not developers.– Requires certificates of occupancy and of

locality subject to stringent qualifications• No recapture of allowance if qualifying

use terminates within 10 years

Urban development allowances

• Erection of new / extension of old buildings– 20% of cost in year of first use– 5% p.a. for 16 years

• Improvement of old bldgs (including incidental additions) if original fabric or exterior is preserved– 20% p.a. commencing in year of first use for

five years

Urban development allowances – ‘cost’

Includes

• demolition,excavation,

• Adjoining structures for water, power, parking,drainage,security,waste disposal, access (including frontage)