SABBEX

News fro the Dti

Export Marketing and Investment Assistance (EMIA)

Benefit update for Boat Building Industry

Transport of samples / freight forwarding

 

Where sailing boats are used to transport samples or freight to national pavilions, reimbursement of the cost thereof will be considered up to a maximum of 50% of the actual costs, not exceeding R125 000.  The number of boats will, however, be limited to three boats per event.  The benefit will be forfeited should the vessel be sold or left behind after the event.  Proof must be submitted to EMIA that the vessel returned to South Africa before the claim will be considered for reimbursement. 

Please have a look at the entire document on http://www.thedti.gov.za/rule_change2011.pdf

Section 12i Income Tax Allowance

 Incentive Introduced to Support Greenfield and Brownfield Investment Projects

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 new incentive offers support for both capital investment and training.

Objectives

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;

Training of personnel, to improve labour productivity and the skills profile of the labour force.

Offerings

The incentive offers:

R900 million in the case of any Greenfield project with a preferred status;

R550 million in the case of any other Greenfield project;

R550 million in the case of any Brownfield project with a preferred status;

R350 million in the case of any other Brownfield project;

An additional training allowance of R36 000 per employee may be deducted from taxable income; and

A maximum total additional training allowance per project, amounting to R20 million, in the case of a qualifying project, and R30 million in the case of a preferred project.

According to the point system, an Industrial Policy project will achieve 'qualifying status' if it achieves at least five (5) of the total 10 points, and a 'preferred status' if it achieves at least eight (8) of the total 10 points.

Targeted Beneficiaries

The investment must be:

Greenfield project (new project);

Brownfield project (expansion or upgrade); or

Classified under 'Major Division 3: Manufacturing'.

The project should:

Upgrade an industry within South Africa (via an innovative process, cleaner production technology or improved energy efficiency);

Provide general business linkages within South Africa;

Acquire goods and services from small, medium and micro-sized enterprises (SMMEs);

Create direct employment within South Africa;

Provide skills development in South Africa; and

In the case of a Greenfield project, be located within an Industrial Development Zone (IDZ).

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