The 12I Tax Allowance 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 incentive offers support based on capital investment and training. The minimum investment in Qualifying Assets required is R50 million for a Greenfield project and an additional investment of R30 million for a brownfield project.
- 55% of Qualifying Assets or a maximum of R900 million investment allowance in the case of any Greenfield project with a preferred status (100% if located in a Special Economic Zone or “SEZ”)
- 35% of Qualifying Assets or a maximum R550 million investment allowance in the case of any other Greenfield project (75% if located in a Special Economic Zone or “SEZ”);
- 55% of Qualifying Assets or a maximum of R550 million investment allowance in the case of any Brownfield project with a preferred status;
- 35% of Qualifying Assets or a maximum of R350 million investment allowance in the case of any other Brownfield project.
Qualifying Assets are defined as new and unused buildings and new and unused plant & machinery contracted for and acquired after date of approval and brought into use within 4 years from date of approval.
A training allowance of R36 000 per full time employee may be deducted from taxable income during the first 6 years.
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.
Going forward, incentive and Dream Team Capital can play an even more important role in the co-ordination, integration and reporting on the consolidated performance of the various fragmented energy efficiency initiatives in the country. Contact us today for professional assistance in streamlining your application for the 12I Tax Allowance Incentive…