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 Oct 2015 | Removal date: open ended
Still in force

Tax or social insurance relief

On 9 October 2015, the Department of Trade and Industry (DTI) of South Africa adopted Notice 961 announcing the approval of an application made by Burgan Cape Terminals (Pty) Ltd for the 12I Tax Allowance Programme. As a result, the investment allowance granted to the local storage provider and distributor which is deductible from taxable income is circa ZAR 233.7 million (USD 17.5 million), and the training allowance is ZAR 792,000 (circa USD 59,000).

The DTI has stated that the manufacturing qualifying assets accounted for the company's total investments estimated at ZAR 667.6 million (USD 50 million), and due to the specific characteristics of the project, the DTI classified this investment as a Greenfield project.

The purpose of the investment is to blend fuel products.

 
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

333 Petroleum oils & oils of bituminous materials, other than crude
2710 Petroleum oils and oils obtained from bituminous minerals, other than crude; preparations not elsewhere specified or included, containing by weight 70 % or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic con
271012 Light oils and preparations
271019 Other

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