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 Jan 2012 | Removal date: open ended
Still in force

Tax or social insurance relief

On 12 January 2012, the Department of Trade and Industry (DTI) of South Africa issued Notice 65 announcing the approval of an application made by The Mamba Cement Company (Ply) Ltd for the 12I Tax Allowance Programme. As a result, the investment allowance granted to the local cement company which is deductible from taxable income is circa ZAR 441.3 million (circa USD 57 million), and the training allowance is ZAR 6.5 million (circa USD 839,000). The Ministry estimates the foregone revenue to be ZAR 125,381,312 (USD 16.8 million)

The DTI has stated that the manufacturing qualifying assets accounted for the company's total investments estimated at ZAR 1,260.8 million (USD 162.7 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 manufacture cement.

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

374 Plaster, lime & cement
2523 Portland cement, aluminous cement, slag cement, supersulphate cement and similar hydraulic cements, whether or not coloured or in the form of clinkers.
252329 Other

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