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: 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 955 announcing the approval of an application made by PG Bison (Pty) Ltd for the 12I Tax Allowance Programme. As a result, the investment allowance granted to the local wood-based panel products manufacturer which is deductible from taxable income is ZAR 241.5 million (USD 18 million), and the training allowance is ZAR 4 million (USD 300,000).

The DTI has stated that the manufacturing qualifying assets accounted for the company's total investments estimated at ZAR 690 million (circa USD 51.8 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 Polyethylene Terephthalate Resin.

 
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

347 Plastics in primary forms
3907 Polyacetals, other polyethers and epoxide resins, in primary forms; polycarbonates, alkyd resins, polyallyl esters and other polyesters, in primary forms.
390760 Poly(ethylene terephthalate)

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