Companies within the SEZ can get access to incentives: Dube TradePort
During BRICS Business Council delegation visit to Dube TradePort this week, investors were told that qualifying companies located within Dube TradePort special economic zone (SEZ) are now eligible to access SEZ incentives.
July 26, 2018: During BRICS Business Council delegation visit to Dube TradePort this week, investors were told that qualifying companies located within Dube TradePort special economic zone (SEZ) are now eligible to access SEZ incentives. After finance minister Nhlanhla Nene published his approval of 12R and 12S in the government gazette on the July 6, 2018. However, what really added to the investment appetite is the flurry of activity taking place within the zone where work is currently underway with the development of Dube TradeZone 2, which opens up an additional 45 hectares for development within the SEZ.
Amongst the incentives that companies will be able to claim with this approval by the FM is the accelerated depreciation allowance on capital structures, which is a tax rebate on the investment a company makes in the buildings it operates from. This tax rebate is valued at 10 percent of the total investment amount per annum, over 10 years; it serves to encourage businesses to invest in new facilities. Secondly, certain companies undertaking business activities within the SEZ will be eligible to benefit from a reduced corporate tax rate of 15 percent instead of the normal 28 percent corporate tax rate.
"Seeing the implementation of this legislation is a significant milestone for South Africa as it serves as a support measure that will accelerate the growth of manufacturing and exports. In addition to attracting further domestic and foreign direct investment while improving the adoption of new technologies and skills into the market. Companies will also be entitled to claim to an employment tax incentive (ETI), which encourages employers to hire the youth and other less experienced job seekers. However, the employee age restriction will not apply within SEZ which will broaden the benefit of ETI to both workers and SEZ Enterprises,” said Jabulani Sithole, SEZ Programme Manager,
Since its inception, Dube TradePort Special Economic Zone has created a total of 3,088 permanent jobs. In the last year, alone businesses operating within the Dube TradePort SEZ have created 432 new permanent jobs.
"Till date, Dube TradePort has secured R 3.2 billion in private sector investment. This development is going to be purpose-built for businesses in the pharmaceuticals and electronics sectors, offering common utilities to service these industries. The development will allow the organization to further target local and foreign investment. With international forums like the BRICS highlighting Durban as an a trade and investment destination, our current projections point to the expanded zone attracting in excess of R10bn of private sector investment over the next five years, which will spur further job creation in the region," he concluded..