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: 12 Apr 2012 | Removal date: open ended
Still in force

Tax or social insurance relief

On 12 April 2012, the Department of Trade and Industry (DTI) of South Africa issued Notice 311 announcing the approval of an application made by Unilever South Africa (Pty) Ltd for the 12I Tax Allowance Programme. As a result, the investment allowance granted to the multinational company which is deductible from taxable income is circa ZAR 357.2 million (circa USD 32.6 million), and the training allowance is ZAR 7 million (USD 887,000). The Ministry estimates the foregone revenue to be ZAR 73,972,786 (USD 11 million).

The DTI has stated that from the company's total investments estimated at ZAR 1,170.7 million (circa USD 148.4 million), the manufacturing qualifying assets accounted for circa ZAR 734.8 million (USD 93 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 liquid personal care 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

353 Soap, cleaning preparations, perfumes & toilet preparations
3401 Soap; organic surfaceactive products and preparations for use as soap, in the form of bars, cakes, moulded pieces or shapes, whether or not containing soap; organic surfaceactive products and preparations for washing the skin, in the form of liquid or c
340130 Organic surfaceactive products and preparations for washing the skin, in the form of liquid or cream and put up for retail sale, whether or not containing soap
3402 Organic surfaceactive agents (other than soap); surfaceactive preparations, washing preparations (including auxiliary washing preparations) and cleaning preparations, whether or not containing soap, other than those of heading 34.01.
340211 Anionic
340212 Cationic
340213 Nonionic
340219 Other
340220 Preparations put up for retail sale
340290 Other

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