IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
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Inception date: 09 Mar 2018 | Removal date: open ended
Still in force

Tax or social insurance relief

On 9 March 2018, the Department of Trade and Industry (DTI) of South Africa issued Notice 120 announcing the approval of an application made by Corobrik (Pty) Ltd for the 12I Tax Allowance Programme. As a result, the investment allowance granted to the local bricks manufacturer and deductible from taxable income is ZAR 270.4 million (circa USD 22.9 million), and the training allowance is ZAR 720,000 (circa USD 61,000).

The DTI has stated that from the company's total investments estimated at ZAR 498 million (USD 42 million), the manufacturing qualifying assets accounted for ZAR 491.6 million (USD 41.6 million). Due to the specific characteristics of the project, the DTI classified this investment as a Brownfield project.

The purpose of the investment is to manufacture clay bricks.

 
Section 12I Tax Allowance Incentive
The 12I Tax Incentive seeks to promote Greenfield and Brownfield investments with the objective to boost the productivity of the South African manufacturing sector and increase the productivity of the human capital.
 
The minimum investment required in qualifying assets is ZAR 50 million for a greenfield project (projects that use only new and unused manufacturing assets) and an additional investment of ZAR 30 million for a brownfield project (expansions or upgrades of existing industrial complexes). 
 
The total investment allowance range between 35% and 55% (or ZAR 350 million and ZAR 900 million) depending on the type of the investment, the status classification, and the localization.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

373 Refractory products & structural non-refractory clay products
6902 Refractory bricks, blocks, tiles and similar refractory ceramic constructional goods, other than those of siliceous fossil meals or similar siliceous earths.
690290 Other

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