IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 18 Dec 2013 | Removal date: open ended
Still in force

Tax or social insurance relief

On 18 December 2013, the South African Minister of Trade signed a new deal that allowed for Gibela Rail Transportation Consortium (Pty) Ltd R496,636,912 in tax breaks to be spent on investments and personnel training related to the manufacture of railway train products. The Ministry estimates the foregone revenue to be R139,058,335 (USD 13,541,177 at the time).

The described tax break is awarded under Section 12I of the South African Income Tax Act of 1962. Section 12I allows for tax incentives in both “Greenfield investments” that are considered new industrial projects that utilise only new and unused manufacturing assets as well as “Brownfield investments” which are expansions or upgrades of existing industrial projects. Such investments are to be destined to manufacturing assets and training of employees allocated to such projects. Priority is given to the latter type of projects. Allowances for the manufacturing sector may amount to up to R900 million and up to R30 million for training purposes per participating firm. Subject to the approval of the Minister of Trade, these allowances are deductible from the taxable income of the participating company.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

381 Furniture
9401 Seats (other than those of heading 94.02), whether or not convertible into beds, and parts thereof.
940120 Seats of a kind used for motor vehicles
940130 Swivel seats with variable height adjustment
940171 Upholstered
940179 Other
495 Railway & tramway locomotives & rolling stock; parts
8601 Rail locomotives powered from an external source of electricity or by electric accumulators.
860110 Powered from an external source of electricity
8602 Other rail locomotives; locomotive tenders.
860210 Dieselelectric locomotives
860290 Other
8606 Railway or tramway goods vans and wagons, not selfpropelled.
860699 Other
8607 Parts of railway or tramway locomotives or rollingstock.
860711 Driving bogies and bisselbogies
860712 Other bogies and bisselbogies
860719 Other, including parts
860721 Air brakes and parts thereof
860729 Other
860730 Hooks and other coupling devices, buffers, and parts thereof
860791 Of locomotives
860799 Other
8608 Railway or tramway track fixtures and fittings; mechanical (including electromechanical) signalling, safety or traffic control equipment for railways, tramways, roads, inland waterways, parking facilities, port installations or airfields; parts of the fo
860800 Railway or tramway track fixtures and fittings; mechanical (including electromechanical) signalling, safety or traffic control equipment for railways, tramways, roads, inland waterways, parking facilities, port installations or airfields; parts of the fo

Please report this page in case you detect an inaccuracy in its content.