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: 14 Aug 2013 | Removal date: open ended
Still in force

Tax or social insurance relief

On 14 August 2013, the South African Minister of Trade signed a new deal that allowed for Moxisign R853,364,548 in tax breaks to be spent on investments and personnel training related to the manufacture of API and API biological peptides. The Ministry estimates the foregone revenue to be R238,942,073 (USD 23,586,656 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

352 Pharmaceutical products
2918 Carboxylic acids with additional oxygen function and their anhydrides, halides, peroxides and peroxyacids; their halogenated, sulphonated, nitrated or nitrosated derivatives.
291822 OAcetylsalicylic acid, its salts and esters
2922 Oxygenfunction aminocompounds.
292241 Lysine and its esters; salts thereof
292242 Glutamic acid and its salts
2923 Quaternary ammonium salts and hydroxides; lecithins and other phosphoaminolipids, whether or not chemically defined.
292320 Lecithins and other phosphoaminolipids
292390 Other
2924 Carboxyamidefunction compounds; amidefunction compounds of carbonic acid.
292411 Meprobamate (INN)
292419 Other
292429 Other
2933 Heterocyclic compounds with nitrogen heteroatom(s) only.
293359 Other
293369 Other
2935 Sulphonamides.
293500 Sulphonamides.
2936 Provitamins and vitamins, natural or reproduced by synthesis (including natural concentrates), derivatives thereof used primarily as vitamins, and intermixtures of the foregoing, whether or not in any solvent.
293621 Vitamins A and their derivatives
293623 Vitamin B2 and its derivatives
293625 Vitamin B6 and its derivatives
293627 Vitamin C and its derivatives
293628 Vitamin E and its derivatives
293629 Other vitamins and their derivatives
2937 Hormones, prostaglandins, thromboxanes and leukotrienes, natural or reproduced by synthesis; derivatives and structural analogues thereof, including chain modified polypeptides, used primarily as hormones.
293721 Cortisone, hydrocortisone, prednisone (dehydrocortisone) and prednisolone (dehydrohydrocortisone)
293790 Other
2939 Vegetable alkaloids, natural or reproduced by synthesis, and their salts, ethers, esters and other derivatives.
293911 Concentrates of poppy straw; buprenorphine (INN), codeine, dihydrocodeine (INN), ethylmorphine, etorphine (INN), heroin, hydrocodone (INN), hydromorphone (INN), morphine, nicomorphine (INN), oxycodone (INN), oxymorphone (INN), pholcodine (INN), thebaco
293930 Caffeine and its salts
293942 Pseudoephedrine (INN) and its salts
2941 Antibiotics.
294110 Penicillins and their derivatives with a penicillanic acid structure; salts thereof
294130 Tetracyclines and their derivatives; salts thereof
294150 Erythromycin and its derivatives; salts thereof
294190 Other
3002 Human blood; animal blood prepared for therapeutic, prophylactic or diagnostic uses; antisera, other blood fractions and immunological products, whether or not modified or obtained by means of biotechnological processes; vaccines, toxins, cultures of micr
300230 Vaccines for veterinary medicine
3003 Medicaments (excluding goods of heading 30.02, 30.05 or 30.06) consisting of two or more constituents which have been mixed together for therapeutic or prophylactic uses, not put up in measured doses or in forms or packings for retail sale.
300310 Containing penicillins or derivatives thereof, with a penicillanic acid structure, or streptomycins or their derivatives
300320 Containing other antibiotics
300390 Other
3004 Medicaments (excluding goods of heading 30.02, 30.05 or 30.06) consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses (including those in the form of transdermal administration systems) or in forms or packin
300410 Containing penicillins or derivatives thereof, with a penicillanic acid structure, or streptomycins or their derivatives
300420 Containing other antibiotics
300431 Containing insulin
300432 Containing corticosteroid hormones, their derivatives or structural analogues
300439 Other
300440 Containing alkaloids or derivatives thereof but not containing hormones, other products of heading 29.37 or antibiotics
300450 Other medicaments containing vitamins or other products of heading 29.36
300490 Other
3005 Wadding, gauze, bandages and similar articles (for example, dressings, adhesive plasters, poultices), impregnated or coated with pharmaceutical substances or put up in forms or packings for retail sale for medical, surgical, dental or veterinary purposes.
300590 Other
3006 Pharmaceutical goods specified in Note 4 to this Chapter.
300630 Opacifying preparations for Xray examinations; diagnostic reagents designed to be administered to the patient
300660 Chemical contraceptive preparations based on hormones, on other products of heading 29.37 or on spermicides
354 Chemical products n.e.c.
3822 Diagnostic or laboratory reagents on a backing, prepared diagnostic or laboratory reagents whether or not on a backing, other than those of heading 30.02 or 30.06; certified reference materials.
382200 Diagnostic or laboratory reagents on a backing, prepared diagnostic or laboratory reagents whether or not on a backing, other than those of heading 30.02 or 30.06; certified reference materials.

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