Mission To industrialize the economy,sajapan.org/wp-content/uploads/2015/02/SEZ-Booklet.pdfMission...

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CONTENTS

MissionTo industrialize the economy,

attract investment, promote exports and overcome the legacy of

economic imbalance

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VisionThe heartbeat of trade, investment, sustainable economic development

and job creation

1. Vision and Mission ........................................................................................................................ Page 3

2. Overview & Purpose of the SEZ .................................................................................................... Page 4

3. PlatinumValleyInvestmentOpportunities...................................................................................Page4

4. ProjectLocation............................................................................................................................Page5

PICRTURES / CENTREFOLD ............................................................................................................ Page 6

5. SEZIncentives...............................................................................................................................Page8

6. SEZIncentives–OtherAllowances...............................................................................................Page8

7. LegislativeFramework..................................................................................................................Page9

8. Roles&ResponsibilitiesonSEZ....................................................................................................Page10

9. Projectcontacts............................................................................................................................Page12

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2. Overview and Purpose of SEZ

The Platinum Valley SEZ Project has been established to:

•IncreaseforeignanddomesticinvestmentintheBojanalaDistrict;•Increaseexportsofvalue-addedmanufacturedgoodsfromtheregion;•EnsureEmploymentcreation,technologytransferandskillsdevelopment;•Ensurethecreationofeconomiclinkagesthroughsupplierdevelopment;•Ensurethespreadofindustrialdevelopmentregionallyandthepromotionofindustrialagglomerationintheregion;•BuildtherequiredindustrialinfrastructureinBojanalaDistrict;•Promotecoordinatedplanningamongkeygovernmentagencies.

3. Platinum Valley Opportunities

Thefollowingvaluechainshavebeenidentifiedasviableopportunitieswhichneedtobepursued:MiningInputSupply–CapitalEquipment,BallMill,Ventilationandrefrigerationequipment,andDrillingEquipment; •PharmaceuticalsandChemicals •Catalyticconvertors •OilandGasIndustryApplications •FuelCells(MainFocusforthePlatinumValleySEZ) •FerrochromeSector •PlatinumRecycling

4. Project Location

BodireloIndustrialParkinMosesKotaneLocalMunicipalitywillbethemainHubfortheSEZ–a100hactorsitewhichprovidesforathreephasesitedevelopmentfora •LogisticsPark, •LightManufacturingSpaceand •HeavyManufacturingSpace.

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5. SEZ Incentives

•Qualifying12R–QualifyingcompanieswillbesubjectedtoareducedCITtaxrateof15%;•Section12S–QualifyingcompanieswithinSEZswillgetextraacceleratedallowancesonbuildingsandimprovementstobuildings•Companiesemployingsalariedemployees(belowR6000permonth)willbegivenawageincentives;•SpecialcustomsandVATincentives;•TaxpayersachievingSEZstatuswillretainstatusfor10years;•Allsubjecttoasunsetclauseuntil2024.

6. SEZ Incentives – Other Allowances

•IndustrialPolicyInvestmentprojects•Depreciationallowance•Capitalallowance–machineryandplant(manufacturingallowances),hotel,ships,aircraft,pipelines,transmissionlinesandrailways;•AirportandPortAssets–5%annualdeductiononthecostofacquisition•Learnershipallowance–•EmployergetsdeductionofR30,000ineachoftheofleadership•Employergetsdeductionattheendoflearnership–R30,000eachyearcompleted•VCCregime;BuildingandHousingallowances.

•Deductionofanallowanceinrespectofenvironmentaltreatmentandrecyclingasset•Deductionsinrespectofenvironmentalconservationandmaintenance•Certifiedemissionreductions–tradablecarbonemissions•Energysavingincentives•ResearchandDevelopmentAllowances–150%•SmallBusinessturnovertax–turnoverlessthanR1million•SmallBusinessCorporation(lessthanR20millionturnover)•Accelerateddepreciationallowance–allYear1•Improvedtaxrates–ongraduatedbasis

7. Legislative Framework for SEZs:

ThePlatinumValleyisestablishedintermsoftheSEZActof2014;TheActprovidefor:

•TheMinistertodeterminepolicyforthedesignation,promotion,development,operationandmanagementofSpecialEconomicZones;

•TheSEZActprovidesfortheestablishmentoftheAdvisoryBoardtoadvisetheMinisteronthefollowing: -DesignationofSEZs; -FinancingandSupportMeasures; -SEZFund–applicationsandapprovals; -SupportMeasures; -ImplementationProtocols.

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8. Roles and Responsibilities on SEZ

TheimplementationofSEZsrequireforacordialrelationsbetweennationaldepartments,provincialandlocalgovernmentbasedonIGRFramework–mutualrespectbetweenthedifferentspheresandstateagencies;

•ThenationaldepartmentswhohavearoleinSEZsare: -Dti–responsibleforpolicyontheestablishmentandoperationofSEZs,NationalTreasury–approval offundingandspecialwaiversforforeigninvestors(capitalmovementandinvestments), -MineralResources–custodianofMineralBeneficiationpolicy; -Energy–implementationofdifferentenergymixandtechnologies; -HomeAffairs–approvalofworkpermitsforforeignworkersinSA; -ScienceandTechnology–supportfortechnologytransfer; -HigherEducation–custodianofskillsdevelopmentpolicy;

•Intheprovince,thekeydepartmentsare:TreasuryandEnterpriseDevelopment,CooperativeGovernance,RoadsandTransport,

•NationalAgencies:SARS,Transnet,Eskom,andIDC

•Municipalities:BojanalaDistrictMunicipality;RustenburgLocalMunicipality;MosesKotaneLocalMunicipalityandMadibengLocalMunicipality

Contact details:PlatinumValleySEZ

NWDCTrade&InvestmentOffice171BeyersNaude,Rustenburg,BojanalaDistrictNorthWestProvince,RepublicofSouthAfrica

www.nwdc.co.za

Tel:0145942576MrDavisSadike

ProjectExecutive:PV-SEZDaviss@nwdc.co.za