3. 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
4. Main Qualifiers
• Manufacturing only
• Obtain approval before making any financial
commitment
• Modern technology
Section 12 i
5. Section12 i
How much?
INVESTMENT ALLOWANCE
TYPE OUTSIDE
IDZ
INSIDE
IDZ
MAXIMUM
Qualifying
status
35% 75% Green = R550M
Brown= 350M
Preferred
status
55% 100% Green = R900M
Brown = R550M
6. Conclusion
• Great for large companies
• Great for those located in an IDZ or SEZ
• Onerous requirements
• Not much time left
Section 12 i