Industrial Policy Projects – 12 I Tax Allowance
The production incentive programme is available to either new manufacturing companies or existing manufacturers who are undertaking a substantial upgrade.
Qualifying companies may be approved for an additional allowance, calculated against the cost of the qualifying investment being made in plant and equipment together with new buildings. In addition to qualifying capitalised investment, an additional allowance of up to R 36,000 per employee may be awarded against qualifying training costs incurred.
New investment projects are required to demonstrate a minimum qualifying investment of at least R 50 million within four years of the projects start of production date while existing companies will be required to demonstrate minimum qualifying costs of R 30 million, subject to specific additional criteria.
A total additional allowance of 35% to 100% of total qualifying costs may be awarded. Investment projects within an Industrial Development Zone (IDZ) may secure an additional allowance of 75% - 100%, while investment projects outside of an IDZ may secure an additional allowance of 35% - 55%.
Applications will be considered to 31 December 2015
Application approval is required to be secured in advance of the investment project being contracted for.