ANNOUNCEMENT 08 Nov 2010In November 2010, the government of South Africa announced a targeted tax change.
NUMBER OF INTERVENTIONS
South Africa Department of Trade and Industry, 'Section 12i Income Tax Allowance Incentive Introduced to Support Greenfield and Brownfield Investment Projects.' http://www.dti.gov.za/teo/12i.htm
BuaNews.2010. 'South Africa: New Tax Incentive for Manufacturing Sector.' 8 November, http://allafrica.com/stories/201011081130.html
The government on 8 November 2010 introduced a tax incentive to enhance productivity in the sector, improve upon investment and enhance skills. The incentive offers 900million Rand for new industrial projects which use new and unused manufacturing assets (Greenfield investments) and 500 million Rand for Brownfield projects which provide for expansion or upgrades of existing projects. The incentive is effective until 31 December 2015 and replaces the Strategic Industrial Projects (SIP) which was launched to attract private sector investment.
Among the criteria for firms to receive the tax relief is projects which create direct employment in the country, provide general business linkages within the country and acquire goods and services from small, medium and micro scale enterprises . The tobacco, alcoholic beverages, arms and ammunition sectors are exempt from the relief.