Section 49B: Small company qualified under an approved scheme

49B. Small company qualified under an approved scheme (1) Notwithstanding this Act, but subject to this section, a small company which qualifies under a scheme referred to in section 5A of the Small and Medium Enterprises Development Authority Act shall be exempt— (a) from income tax in respect of income derived from the activities relating to a project under a scheme referred to in section 5A of the Small and Medium Enterprises Development Authority Act; and (b) from the requirements to deduct income tax under section 111C. (2) The period of exemption under subsection (1) shall not exceed 8 succeeding years from the income year immediately ending after 1 July 2015 or from the income year in which the small company starts its activity, whichever is the later. (3) Any unrelieved tax losses shall not be carried forward after the expiry of the period referred to in subsection (2). (4) In this section— “small company” means— (a) a company incorporated under the Companies Act and registered under the Small and Medium Enterprises Development Authority Act on or after 2 June 2015; (b) a co-operative society set up on or after 2 June 2015 and registered under the Small and Medium Enterprises Development Authority Act. [S. 49B inserted by s. 24 (e) of Act 9 of 2015 w.e.f. 14 May 2015; amended by s. 27 (g) of Act 18 of 2016 w.e.f. 1 July 2016 in respect of the year of assessment commencing on 1 July 2016 and in respect of every subsequent year of assessment.]