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The DTI's incentives for Industrial Policy Projects


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Theo Meintjes' presentation on the DTI Incentives for industrial policy projects at the Cap40.

Published in: Economy & Finance, Business
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The DTI's incentives for Industrial Policy Projects

  1. 1. 1 21/05/2014 Getting hold of the investment incentives offered by the DTI. Speaker: Theo Meintjes
  2. 2. SECTION 12 i “Industrial Policy Projects” Compiled and presented by Dectra
  3. 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. 4. Main Qualifiers • Manufacturing only • Obtain approval before making any financial commitment • Modern technology Section 12 i
  5. 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. 6. Conclusion • Great for large companies • Great for those located in an IDZ or SEZ • Onerous requirements • Not much time left Section 12 i