The South African government approved a tax incentive for Kimberly-Clark South Africa (Pty) Ltd as part of the Tax Allowance Program.



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Government Gazette. The Republic of South Africa. Volume 633 No. 41488 de 9 March 2018. Department of Trade and Industry. Notice 115 of 2018. Available at:

Department of Trade and Industry. Section 12I Tax Allowance Incentive (12I TAI). Available at:

Inception date: 09 Mar 2018 | Removal date: open ended
Still in force

Tax or social insurance relief

On 9 March 2018, the Department of Trade and Industry (DTI) of South Africa issued Notice 115 announcing the approval of an application made by Kimberly-Clark South Africa (Pty) Ltd for the 12I Tax Allowance Programme. As a result, the investment allowance granted to the local producer of consumer care products which is deductible from taxable income is ZAR 268.6 million (USD 22.7 million), and the training allowance is ZAR 993,777 million (USD 84,000).

The total investments are estimated at ZAR 268.6 million (USD 22.7 million), and it is classified by the DTI as a Greenfield project.

The purpose of the investment is to manufacture open diapers. 

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.