Gauteng Business 2016 edition

SPECIAL FEATURE
the development of rail transportation
infrastructure.
Environmental
Expenditure Deductions
and Allowances
Expenditures on a range of environmentally
friendly equipment
also qualify for tax incentives. For
instance, expenditure on environmental
treatment, recycling
assets and environmental waste
disposal assets that are supplemental
to a particular manufacturing
process is eligible for a tax
deduction of between 5 and 40
percent per annum.
Carbon Reducing Changes
A tax exemption is available for
companies whose revenues are
derived from primary Certified
Emission Reductions. It is applicable
for all revenues received in
respect of disposal on or after 11
February 2009.
Research and
Development Incentives
The Support Programme for
Industrial Innovation (SPII) provides
financial assistance to all
manufacturing or software development
enterprises that are
registered in South Africa and
engage in the development of
innovative, competitive products
and/or processes that promote
technology development in the
country.
Enterprise Development Incentives
• Grants – Critical Infrastructure Programme:
Through the Critical Infrastructure Programme, cash grants amounting
to between 10 and 30 percent of infrastructure development costs are
available for new or expanding enterprises that invest in infrastructure
such as roads, railways, electricity transmission and distribution, water
pipelines, telecommunication networks and sewage systems.
• Grants – Local Economic Development Programme
Through the Local Economic Development Programme, grants of
up to 70 percent are available for projects that create an enabling
environment for investment in key areas. This is seen as critical to the
development of markets that facilitate linkages between established
and emerging sectors in these areas.
• Grants – Business Process Service Sector
In order to attract investment into the Business Process Service sector,
grants of up to R112 000 per offshore job created, and an additional
bonus structure is available to local and foreign investors that create
jobs in South Africa to serve offshore clients.
• Tax Exemptions – Manufacturing Investment Programme
In order to stimulate local and foreign capital investment in productive
qualifying assets and manufacturing, a tax-exempt reimbursable cash
grant is available through the Manufacturing Investment Programme
for investors in new or expansion projects in the South African manufacturing
sector.
• Grants – Foreign Investment Grant
The Foreign Investment Grant is designed to encourage foreign businesses
to invest in manufacturing companies in South Africa by assisting
in the cost of transporting productive qualifying assets to the
country.
• Tax Exemptions – Local and Foreign Direct Investment in Industrial
Policy Projects
A tax incentive – in the form of an additional tax allowance – is available
to promote local and foreign direct investment in industrial policy
projects in South Africa. The additional tax allowance is provided for
up to 55 percent of the cost of any manufacturing asset used in a
qualifying industrial policy project and allocated preferred status (the
allowance is 35 percent for other projects).
• Grants – Tourism Enterprise Support Programme (TEP)
The TEP assists large operators, investors, SMMEs and historically dis-
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