South Africa's Enterprise and Supplier Development Landscape
South Africa's Enterprise and Supplier Development Landscape
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    • About Us
    • About this Website
    • Contact
    • Newsletter Subscription
  • Blog
  • Thought Leadership
    • The Role of Information in Enabling Entrepreneurship
    • Starting-up: Creating Assets while Reducing Risks
    • Breaking into an unchallenged field
    • Navigating Corporate Supply Chains
    • Diversification as a Rapid Growth and Expansion Strategy
    • Are Early Stage Entrepreneurship Development Programmes Misaligned to South African Reality?
  • Search ESD Programmes
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Programme: The Dti 121 Tax Allowance Incentive

Organisation: Department of Trade and Industry
 

Type of Support
  • Incentives for Capital Investments; and
  • Training.
 

Programme Description

The programme offers tax incentives targeted at new industrial projects that utilise new and previously unused manufacturing assets as well as expansions or upgrades of existing industrial projects. A point system is used to determine the amount awarded 
A training allowance of R36 000 per employee may be deducted from taxable income and up to R20 million additional training allowance may be deducted for qualifying projects as well as R30 million for preferred projects.
 

Target Market

Manufacturers that are involved in any of the following
  • Greenfield (new) project,
  • Brownfield (expansion or upgrade) project, or
  • Activities classified under “Major Division 3: Manufacturing’.
 

Application Conditions

According to the point system, an Industrial Policy project will achieve 'qualifying status' if it achieves at least five of the total 10 points, and a 'preferred status' if it achieves at least eight of the total 10 points.
Applications close in December 2015
 

Application Process

The application form may be downloaded from the website, completed and emailed to either of the individuals named below.
 

Success Stories

  1. Since the Section 121 Tax Allowance Incentive was announced in 2010 the programme has supported 42 projects with an investment value of R43 billion for the period up to 30 April 2014. These projects are within the priority sectors identified in the Industrial Policy Action Plan (IPAP).
 

Contact Details

Contact:
​
Crystal Papier
Email: CPapier@thedti.gov.za
Telephone: 012 394 1069
 
Andre Potgieter
Email:  Andre@thedti.gov.za
Telephone: 012 394 1427
 
More information is available on:
http://www.dti.gov.za/trade_investment/export_incentive.jsp?id=45&subthemeid=26
 
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