Closing Date For Section 12I Tax Incentive Applications

The deadline for submitting Section 12I Industrial Policy Project Tax Incentive application(s) to the Department of Trade and Industry is before/on 31 March 2020.  
 
In 2013, the Section 12I Tax Incentive (“section 12I”) was introduced for the purpose of stimulating investment into the South African industrial sector. Section 12I Incentive allows for the claiming of an additional investment tax allowance (35% or 55% for projects located outside of a Special Economic Zone (SEZ) or 75% or 100% for projects located within a designated SEZ). In addition, a company may be eligible to claim a further tax deduction on the cost of training provided to employees in support of the industrial project.
 
Qualifying section 12I projects have to obtain approval from the Minister of Trade and Industry prior to contracting and ordering any of the qualifying assets. If a project is approved, the applicant has 4 years (with an additional 12 month extension being allowed) from the date of approval to order and to take qualifying assets into production.
 
It is advisable to review your future investment projects and timelines now for your company’s future investment projects to identify viable opportunities for submitting applications to the Department before/on 31 March 2020.
 
Feel free to get in touch with us to discuss your future investment projects and tax incentive needs.