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: 17 Nov 2015 | Removal date: open ended
Still in force

Tax or social insurance relief

On 17 November 2015, the South African Minister of Trade signed a new agreement that allowed for Clover SA R1,088,846,760 in tax breaks to be spent on investments and personnel training related to the manufacture of dairy products. The Ministry estimates the foregone revenue to be R171,938,583 (USD 12,414,402 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

221 Processed liquid milk, cream & whey
0401 Milk and cream, not concentrated nor containing added sugar or other sweetening matter.
040120 Of a fat content, by weight, exceeding 1 % but not exceeding 6 %
222 Other dairy products
0402 Milk and cream, concentrated or containing added sugar or other sweetening matter.
040210 In powder, granules or other solid forms, of a fat content, by weight, not exceeding 1.5 %
040221 Not containing added sugar or other sweetening matter
0403 Buttermilk, curdled milk and cream, yogurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter or flavoured or containing added fruit, nuts or cocoa.
040310 Yogurt
040390 Other
0405 Butter and other fats and oils derived from milk; dairy spreads.
040510 Butter
2105 Ice cream and other edible ice, whether or not containing cocoa.
210500 Ice cream and other edible ice, whether or not containing cocoa.
3501 Casein, caseinates and other casein derivatives; casein glues.
350110 Casein
231 Grain mill products
1901 Malt extract; food preparations of flour, groats, meal, starch or malt extract, not containing cocoa or containing less than 40 % by weight of cocoa calculated on a totally defatted basis, not elsewhere specified or included; food preparations of goods of
190120 Mixes and doughs for the preparation of bakers' wares of heading 19.05
232 Starches & starch products; sugars & sugar syrups n.e.c.
1702 Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel.
170211 Containing by weight 99 % or more lactose, expressed as anhydrous lactose, calculated on the dry matter
170219 Other

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