South Africa: Updated urban development zone tax incentive guide, including extension to 2030
The urban development zone tax incentive has been extended until March 31, 2030.
The South African Revenue Service (SARS) in June 2025 updated the “Guide to the Urban Development Zone (UDZ) Allowance,” extending the incentive for buildings in 16 UDZs to March 31, 2030.
The guide clarifies that if the allowance is not extended beyond this date, deductions for buildings used after will not be allowed, but ongoing claims can continue if requirements are met.
For more information, contact a KPMG tax professional in South Africa:
Lesley Bosman | lesley.bosman@kpmg.co.za