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21/05/2014

Getting hold of the investment incentives offered by the DTI.

Speaker: Theo Meintjes

SECTION 12 i“Industrial Policy Projects”

Compiled and presented by Dectra

What is 12i about?

• Tax Allowance• Deduct from taxable income. NB: not from tax• Greenfield projects > R200m• Brownfield projects > R30 m• Closing for applications December 2014

Section 12 i

Main Qualifiers

• Manufacturing only

• Obtain approval before making any financial

commitment

• Modern technology

Section 12 i

Section 12 i

How much?

INVESTMENT ALLOWANCE

TYPE OUTSIDE IDZ

INSIDE IDZ

MAXIMUM

Qualifying status

35% 75% Green = R550MBrown= 350M

Preferred status

55% 100% Green = R900MBrown = R550M

Conclusion

• Great for large companies

• Great for those located in an IDZ or SEZ

• Onerous requirements

• Not much time left

Section 12 i