Tax incentives that support job creation in South Africa – a comparative study amongst BRICS.

South Africa’s unemployment rate is amongst the highest in the world. It accounts for approximately two percent of global unemployment. The South African government has recognised the importance of job creation and expressed its willingness to help create more jobs. A comprehensive set of policies is necessary to expand long-term job growth in South Africa. Thus, the government should identify and implement new and effective policies that will help create more jobs. In this study, the tax incentives available to support job creation in Brazil, Russia, India and China and South Africa (BRICS), are researched. The purpose of this study is to perform a comparison of the tax incentives available to support job creation in South Africa with the tax incentives available to support job creation in the BRIC countries. The first objective of the comparison was to evaluate whether the tax incentives that are available to support job creation in South Africa are on par with those available to support job creation in the BRIC countries. The second objective of the comparative study was to identify tax incentives that are available in BRIC countries for job creation that are not available in South Africa so that the government may consider whether these incentives are feasible in South Africa. It was found that the tax incentives that support job creation in South Africa are in some instances on par with, and in some instances even exceed, the tax incentives that are available to support job creation in the BRIC countries.

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