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: 27 Mar 2015 | Removal date: open ended
Still in force

Tax or social insurance relief

On 27 March 2015, the Department of Trade and Industry (DTI) of South Africa adopted Notice 250 announcing the approval of an application made by Nampak Products Limited for the 12I Tax Allowance Programme. As a result, the investment allowance granted to the metal products manufacturer which is deductible from taxable income is ZAR 150.8 million (USD 12.5 million), and the training allowance is circa ZAR 2.6 million (USD 216,000).

The DTI has stated that the manufacturing qualifying assets accounted for the company's total investments estimated at circa ZAR 705.2 million (USD 58.7 million), and 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 aluminium beverage can.

 
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

429 Other fabricated metal products
7612 Aluminium casks, drums, cans, boxes and similar containers (including rigid or collapsible tubular containers), for any material (other than compressed or liquefied gas), of a capacity not exceeding 300 l, whether or not lined or heatinsulated, but not f
761210 Collapsible tubular containers

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