Section 12(i)

12I Tax Allowance Incentive (12I TAI)

Description

The 12I 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 incentive offers support for both capital investment and training.

NOTE: The window period for receiving applications under this programme has been extended initially from 31 December 2015 to 31 March 2020.

The objectives of the incentive programme are to support the following:

  • Investment in manufacturing assets, to improve the productivity of the South African manufacturing
    sector; and 
  • Training of personnel, to improve labour productivity and the skills profile of the labour force.

Offerings
 
(a)    Investment Allowance

  • 55% of Qualifying Assets or a maximum of R900 million investment allowance in the case of any Greenfield project with a preferred status (100% if located in a Special Economic Zone or “SEZ”) 
  • 35% of Qualifying Assets or a maximum R550 million investment allowance in the case of any other Greenfield project (75% if located in a Special Economic Zone or “SEZ”);
  • 55% of Qualifying Assets or a maximum of R550 million investment allowance in the case of any Brownfield project with a preferred status;
  • 35% of Qualifying Assets or a maximum of R350 million investment allowance in the case of any
    other Brownfield project.

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