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: 13 Jul 2011 | Removal date: open ended
Still in force

Tax or social insurance relief

On 13 July 2011, the Department of Trade and Industry (DTI) of South Africa issued Notice 482 announcing the approval of an application made by Rainbow Nation Renewable Fuels 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 900 million (circa USD 131.9 million), and the training allowance is ZAR 4.7 million (circa USD 689,000). The Ministry estimates the foregone revenue to be ZAR 253,310,400 (USD 37 million).

The DTI has stated that from the company's total investments estimated at ZAR 2,083 million (USD 305 million), the manufacturing qualifying assets accounted for circa ZAR 1,743.9 million (USD 255.5 million). 

The purpose of the investment is to manufacture soybean meal, biodiesel, and Glycenne.

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

219 Oil-cake; flours & meals of oil seeds; vegetable waxes; etc.
2304 Oilcake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of soyabean oil.
230400 Oilcake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of soyabean oil.
354 Chemical products n.e.c.
3826 Biodiesel and mixtures thereof, not containing or containing less than 70 % by weight of petroleum oils or oils obtained from bituminous minerals.
382600 Biodiesel and mixtures thereof, not containing or containing less than 70 % by weight of petroleum oils or oils obtained from bituminous minerals.

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