Oosthuizen, ANtia, Namhla2023-09-202023-09-202022http://hdl.handle.net/11660/12225Dissertation (MBA (Business Administration))--University of the Free State, 2022As the scripture announces, Small and Medium Enterprises (SMEs) are like seeds that can never be dismissed since their operations have contributed significantly to the global economy, and thus all those who see them must acknowledge their contribution. Despite making a major economic contribution, SMEs nonetheless experience several difficulties. One of the difficulties concerns tax regulations which stifle the smooth flow of the functions of SMEs. Considering that small businesses are acknowledged as the backbone of the country’s economic growth, the Government was urged to provide support for them. As a result, Section 12E of the ITA was introduced. Despite the fact that businesses save money through these tax concessions, there have been apprehensions that these ITA Sections are ineffective because of their complex legislation and onerous criteria. Consequently, the aim of this research was to evaluate income tax concessions stipulated in Section 12E of the ITA, specifically regarding small businesses in Bloemfontein. In order to obtain a comprehensive understanding of the income tax concessions offered to small businesses in Bloemfontein, interviews were performed as a qualitative approach of data collection. Ten participants with small business clientele who had an understanding of Section 12E were interviewed by utilising an interview schedule with open-ended questions. Findings revealed that the concessions provided in Section 12E were valuable to small businesses; however, due to a number of reasons, a sizable proportion of small businesses did not qualify for concessions as stipulated by Section 12E. It was recommended that the Government should promote the understanding and utilisation of Section 12E. Changes to the legislation were also proposed.enIncome tax actpersonal servicessection 12Eshareholdingsmall businesssmall business corporationtax concessionsDissertationUniversity of the Free State