Incentive

Benefit

Foreign Investment Grant

This compensates qualifying foreign investors for the cost of moving qualifying new machinery and equipment abroad to South Africa.

Industrial Development Zones

Under specific conditions, import duty rebate on the import of production-related raw materials (including machinery and assets) and VAT exemption on goods produced for export.



More information on CCAs can be found on the SARS’ website



Preferential corporate tax

A lower corporate tax of 15 per cent, instead of the current 28 per cent headline rate.

Section 12i tax allowance

This allowance provides for tax deductions on both green field and brown field investments. The deductions depend on the status of the project viz. preferred or qualifying projects. The incentive offers the following tax allowances (deductible from taxable income):

          An Additional Investment Allowance (i.e. in addition to any other deductions allowable) based on qualifying manufacturing assets and limited to the following amounts:

ü  R900 million in the case of any Greenfield project with a Preferred Status;

ü  R550 million in the case of any other Greenfield project (Qualifying Status);

ü  R550 million in the case of any Brownfield project with a Preferred Status;

ü  R350 million in the case of any other Brownfield project (Qualifying Status)

Employee Tax Incentives (ETI)

This is an incentive aimed at encouraging employers to hire local people. It reduces an employer’s cost of hiring people through a cost-sharing mechanism with government, while leaving the wage the employee receives unaffected. The employer can claim the ETI and reduce the amount of Pay-As-You-Earn (PAYE) tax payable by the amount of the total ETI calculated in respect of all qualifying employees.

Incentive

Benefit

Critical Infrastructure Programme

The Critical Infrastructure Programme (CIP) is a cost sharing grant for projects designed to improve critical infrastructure in South Africa. Infrastructure for which funds are required is deemed to be ‘critical’ if the investment would not take place without the said infrastructure or the said investment would not operate optimally.

Accelerated Depreciation Building Allowance

This incentive provides for accelerated depreciation allowance on capital structures (buildings) of businesses operating with the IDZ or SEZ. The rate will equal 10 per cent per annum over 10 years and is available for erecting or improving buildings and other fixed structures.

Gold loan scheme

This incentive provides working capital loans to gold jewellery manufacturers at a fixed interest rate of 3% per annum

Skills development mandatory and discretionary grants

The investor can claim back the contribution of up to 20% of the Workplace Skills Plan and Annual Training Report and provision of discretionary bursaries to learners to cover tuition fees, books and accommodation


Access to funding


Access to different funding instruments forming part of National Government’s SEZ strategy will be provided for investors wishing to operate at the JMP.

Secure Customs Controlled Area

The JMP will comprise of a gated and highly secure Customs Controlled Area (CCA), in which area, beneficiation will occur.  To this end, effectively controlled entry and exit points into the CCA will apply, thereby ensuring the efficient maintenance and management of high security raw materials and beneficiated products at all times.

 

One Stop Shop for Investor Support

In order to reduce red-tape in government approvals and applications processing, a single point of investor contact through a One Stop Shop will also be available.  The OSS platform is a national government initiative that aims to reduce the cost of doing business by facilitating the permit and licence application process for investors. It further aims to provide efficient and effective investor after care service. Key features of the OSS include: helping investors to plan their developments in terms of land assessment and office space allocations; assisting with licence and permit applications; assisting investors to access applicable incentives; and acting as a single point of reference for government processes