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: 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 309 announcing the approval of an application made by Sasol Chemical Industries Ltd for the 12I Tax Allowance Programme. As a result, the investment allowance granted to the local chemical company which is deductible from taxable income is ZAR 350 million (circa USD 44.6 million), and the training allowance is circa ZAR 3.4 million (circa USD 431,000). The Ministry estimates the foregone revenue to be ZAR 155,162,602 (USD 23 million).

The DTI has stated that from the company's total investments estimated at ZAR 8,020 million (USD 1,016 million), the manufacturing qualifying assets accounted for ZAR 1,626 million (USD 206 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 medium and hard wax and paraffin.

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

335 Petroleum jelly, coke or bitumen; paraffin wax & similar products
2712 Petroleum jelly; paraffin wax, microcrystalline petroleum wax, slack wax, ozokerite, lignite wax, peat wax, other mineral waxes, and similar products obtained by synthesis or by other processes, whether or not coloured.
271220 Paraffin wax containing by weight less than 0.75 % of oil

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