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 Oct 2016 | Removal date: open ended
Still in force

Tax or social insurance relief

On 18 October 2016, the South African authorities approved Siyanda Chrome Smelting Company's application for tax breaks for investments and personnel training for the project to manufacture Ferrochrome Alloy. The total project investment is R 2,711,500,000 (USD 195.3 million). The South African Ministry of Trade and Industry estimates that foregone national revenue to be R 155,955,520 (USD 11,234,734) 

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

411 Basic iron & steel
7202 Ferroalloys.
720241 Containing by weight more than 4 % of carbon
720249 Other

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