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: 03 May 2011 | Removal date: open ended
Still in force

Tax or social insurance relief

On 3 May 2011, the South African Minister of Trade signed a new deal that allowed for RNRF Ltd (Rainbow Nation Renewable Fuels) R904,680,000 in tax breaks to be spent on investments and personnel training related to the manufacture of soybean meal, biodiesel and glycerine. The Ministry estimates the foregone revenue to be R253,310,400 (USD 38,580,064 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

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AFFECTED SECTORS AND PRODUCTS

120 Crude petroleum & natural gas
2709 Petroleum oils and oils obtained from bituminous minerals, crude.
270900 Petroleum oils and oils obtained from bituminous minerals, crude.
239 Food products n.e.c.
0910 Ginger, saffron, turmeric (curcuma), thyme, bay leaves, curry and other spices.
091099 Other
241 Ethyl alcohol; spirits, liqueurs & spirits
2207 Undenatured ethyl alcohol of an alcoholic strength by volume of 80 % vol. or higher; ethyl alcohol and other spirits, denatured, of any strength.
220710 Undenatured ethyl alcohol of an alcoholic strength by volume of 80 % vol. or higher
341 Basic organic chemicals
2905 Acyclic alcohols and their halogenated, sulphonated, nitrated or nitrosated derivatives.
290532 Propylene glycol (propane1,2diol)

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