Investment Incentives
and Support
later replaced by the Special Economic Zone (SEZ) programme to attract
domestic and foreign direct investment and exporting of value-added commodities.
The SEZ Act offers a number of financial and tax incentives to al businesses located in an SEZ to ensure their growth, enhance revenue generation and job creation attract investment and strengthen international competitiveness
Preferential 15%
Corporate Tax
Subject to the requirements contained in the Income Tax Act of 1962, businesses located within in an SEZ may be eligible for normal income tax relief, including a reduced rate of corporate income taxation of 15% instead of 27%
Building Allowance
Businesses operating within an SEZ may be eligible for a 10% new/unused building allowance, subject to the requirements contained in the Income Tax Act of 1962.
Employement Incentive
The employment tax incentive is aimed at encouraging employers to hire young and less experienced work seekers. All employers of low-salaried employees (earning below R60 000 per annum) will be entitled to the employment tax incentive. The employer can claim the incentive by reducing the pay- as-you-earn (PAYE) tax payable in respect of all qualifying employees.
Customs Controlled Area (CCA)
Subject to the requirements contained in the Income Tax Act of 1962, businesses located within in an SEZ may be eligible for normal income tax relief, including a reduced rate of corporate income taxation of 15% instead of 27%
12l tax
allowance
You sent The 12l tax incentive is designed to support greenfield investments (i.e., new industrial projects that utilise only new and unused manufacturing assets), as well as brownfield investments (i.e., expansions or upgrades of existing industrial projects). The new incentive offers support for both capital investment and training.
Angro-Processing
Support Scheme(APSS)
The Department of Trade, Industry and competition offers a 20-30% grant to support capital expenditure investments in the agro-processing sector for eligible businesses. The maximum drant is R20 million. An additional 10% grant is provided for projects contributing to additional economic criteria such as employment, transformation, geographic spread (export) local procurement.
Section 12H
learnership tax allowance
This incentive provides additional tax allowance deductions to employers for qualifying learnership agreements. The additional deductions are intended as an incentive for employers to train employees in a regulated environment to encourage skills development and job creation. The employer is allowed a tax deduction from their trade per qualifying teamer, depending on the NOF level, amounting to R20 000-R40 000 per learner per tax year of assessment in training and R60 000 if the learner is a person with disability.
Section 11D - Reasearch
and development (R&D)tax alllowance
This incentive provides additional tax allowance deductions to employers for qualifying learnership agreements. The additional deductions are intended as an incentive for employers to train employees in a regulated environment to encourage skills development and job creation. The employer is allowed a tax deduction from their trade per qualifying learner, depending on the NQF level, amounting to R20 000-R40 000 per learner per tax year of assessment in training and R60 000 if the learner is a person with disability.
Black Industrialist scheme (BIS)
The BIS financial incentive provides for the accelerated quantitative and qualitative increase and participation of Black industrialists in the national economy. It provides for a cost-sharing grant ranging from 30%-50% to a maximum of R50 million
Export marketing and investment
assistance scheme
Businesses operating within an SEZ may be eligible for a 10% building allowance, subject to the requirements contained in the Income Tax Act of 1962.
Support programme
for industrial innovation (SPII)
The SPII is designed to promote, through the provision of financial assistance to businesses, the development of innovative products and/or processes. SPII is focused specifically on the development phase, which begins at the conclusion of basic research and ends at the point when a pre-production prototype has been produced. It is calculated grar as a percentage of qualifying costs incurred in the development activities of a specified project. The grant is limited to R 5 million.
Critical Infrastructure
programme
This incentive supports the construction of new or expansionary infrastructure made by private companies. The grant covers 10%- 30% of qualifying infrastructural development costs, limited to a maximi by Ro million. Agro- processing applicants obtain 10%-50% of the total infrastructural development costs with a maximum grant of R50 million. Projects that alleviate water and/or electricity dependency on the national grid obtain a grant coverage of 10%- 50%, limited to a maximum of R50 million.