However, a recent announcement by the Finance Minister has extended this to March 2030. <\/p>\n\n\n\n
The UDZ allows businesses which fall within a set area to benefit from significant tax savings for building development, which fall into the following categories:\u00a0<\/p>\n\n\n\n
- \n
- The erection, extension or improvement of or addition to an entire building;<\/li>\n\n\n\n
- The erection, extension, improvement or addition of a part of a building representing a floor area of at least 1,000 sqm; <\/li>\n\n\n\n
- The erection, extension or improvement of or addition to low-cost housing; and\/ or<\/li>\n\n\n\n
- Purchasing such a building or part of a building directly from a developer.<\/li>\n<\/ul>\n\n\n\n
\u201cThis initiative is extremely important to attract private investment in areas that would usually not benefit from investment, and as a result are struggling from urban deprivation and decay,\u201d said Deputy Mayor Eddie Andrews. <\/p>\n\n\n\n
\u201cThe tax savings encourage investments to spur regeneration, improvement, and an overall upliftment in the quality of life for those who work and live in these areas. The city is grateful for the extension of this incentive.\u201d<\/p>\n\n\n\n
MMC for Economic Growth, James Vos, said that extending the UDZ tax incentive gives the city more time and space to drive investment into areas that need it most. <\/p>\n\n\n\n
He noted that the incentive can turn empty or underused buildings into housing, building hubs and vibrant mixed-use spaces. <\/p>\n\n\n\n
Billions saved <\/h2>\n\n\n
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<\/a><\/figure><\/div>\n\n\nThe city has declared UDZs in a section of the CBD near the Cape Town station, Maitland, Parow, Bellville and Athlone.\u00a0<\/p>\n\n\n\n
According to the city\u2019s statistics, the UDZ has resulted in significant tax rebates from 2006 to the present: <\/p>\n\n\n\n
- \n
- Up to 2,057 applications have been submitted with claims to the value of nearly R6.7 billion<\/li>\n\n\n\n
- The value of new constructions amounted to R747 million<\/li>\n\n\n\n
- The value of new acquisitions amounted to over R2.8 billion<\/li>\n\n\n\n
- The value of refurbishments amounted to almost R2.3 billion<\/li>\n\n\n\n
- The value of improvements amounted to R612 million<\/li>\n\n\n\n
- The value of extensions amounted to R238 million<\/li>\n<\/ul>\n\n\n\n
\u201cThe numbers speak for themselves. I want to encourage the private sector to make use of this incentive and help us improve these areas,\u201d said Andrews.<\/p>\n\n\n\n
The city is currently interviewing property developers and claimants to determine the ease of applications and processing, and the general perception and use of the incentive.\u00a0<\/p>\n\n\n\n
The city\u2019s annual report to SARS and National Treasury will be submitted by the end of September 2025 and will confirm the request for geographic expansion.\u00a0\u00a0<\/p>\n\n\n
![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/07\/image-109-1024x724.png\")
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