OUR SERVICES

AUTOMOTIVE

Automotive Investment Scheme
The Automotive Investment Scheme (AIS) is an investment based, cash incentive, available to light motor vehicle automotive component...

AGRO-PROCESSING

Agro-Processing Supporting Scheme
The Agro-Processing Supporting Scheme (APSS) is a cost sharing grant, aimed at stimulating investment by South African agro-processing...

INFRASTRUCTURE

Critical Infrastructure Programme
The Critical Infrastructure Programme (CIP) is a cost sharing grant, supporting the construction of infrastructure projects. Ordinarily, the grant...

EXPORT

Export Marketing Investment Assistance
The Export Marketing Investment Assistance (EMIA) programme has been developed to promote and develop existing and new exporters in...

AQUACULTURE

Aquaculture Development and Enhancement Programme
The Aquaculture Development and Enhancement Programme (ADEP) is an investment-based cash incentive programme available to those...

BLACK BUSINESS

Black Industrialist Scheme
The Black Industrialists Scheme (BIS) objectives are to accelerate the quantitative and qualitative increase and participation of Black Industrialists in...

RESEARCH AND DEVELOPMENT

All companies engaged in all sectors of the economy of South Africa who undertake scientific and technological research may apply for a 150% deduction in respect of operational R & D. This represents...

AUTOMOTIVE – STRATEGIC PARTNERSHIPS

EDC enjoy a strategic working partnership with MICB (Motor Industry Customs Brokers) where collectively we are able to offer our automotive clients a comprehensive...

AGRO-ENERGY

Coming Soon

AGRI-BEE

Coming Soon

GREEN TOURISM INCENTIVE

Coming Soon

LOCAL AND REGIONAL ECONOMIC DEVELOPMENT

Coming Soon

AUTOMOTIVE

Automotive Investment Scheme

The Automotive Investment Scheme (AIS) is an investment based, cash incentive, available to light motor vehicle automotive component manufacturers, tooling manufacturers, light motor vehicle manufacturers and new energy and energy efficient vehicle and component manufacturers. Qualifying costs against which incentive benefits may be claimed include:

  • both used and new plant, equipment and tooling
  • improvements and additions to owned buildings.
 
 

In addition to these capitalised costs, the following costs related to competitiveness improvement may also be incentivised:

  • Process improvements
  • Conformity assessments
  • Product improvements
  • Skills development
  • Information technology systems.
 
 

Qualifying costs may be incentivised at 20% to 25%. Application is required to be submitted at least 120 days (Motor Vehicle Manufacturers) and 90 days (Component Manufacturers) prior to the Project Start Date. Manufacturers of medium and heavy commercial vehicles may qualify for a non-taxable cash grant of 20% while component manufacturers and tooling manufacturers may qualify for a non-taxable cash grant of 25%.

 

Medium and Heavy Commercial Vehicle Automotive Investment Scheme

The Medium and Heavy Commercial Vehicle Automotive Investment Scheme (MHCV-AIS) is a subcomponent of the Automotive Investment Scheme and provides for an investment-based tax free cash incentive.

The incentive programme is available to manufacturers of trucks, bus chassis, truck and bus bodies together with component manufacturers supplying these industries. Qualifying costs against which incentive benefits may be claimed include:

  • newly acquired buildings
  • new and / or second-hand, refurbished and upgraded plant, machinery and tooling.
 
 

Component manufacturers may also qualify for Competitiveness Improvement Costs where these costs may include:

  • process improvements
  • product improvements
  • quality standards
  • skills development and information technology systems.
 
 

Manufacturers of medium and heavy commercial vehicles may qualify for a non-taxable cash grant of between 20% and 30% while component manufacturers and tooling manufacturers may qualify for a non-taxable cash grant of between 25% and 35%. Application is required to be submitted at least 120 days (Heavy Commercial Motor Vehicle Manufacturers) and 90 days (Component Manufacturers and tooling manufacturers) prior to the Project Start Date.

 

People-carrier Automotive Incentive Scheme

The People-carrier Automotive Incentive Scheme (P-AIS) is a subcomponent of the Automotive Investment Scheme and provides for an investment-based tax free cash incentive.

The incentive programme is available to manufacturers of people carrier vehicles with carrying capacities of 10 to 35 persons and a vehicle mass exceeding 2000 kg. Component manufacturers and tooling manufacturers supplying the heavy commercial vehicle manufacturer supply chain locally and internationally may qualify for the P-AIS. Qualifying costs against which incentive benefits may be claimed include:

  • owned buildings and/or improvements to owned buildings
  • new and/or second-hand, refurbished and upgraded plant, machinery and tooling.

Component and tooling manufacturers may also qualify for Competitiveness Improvement Costs where these costs may include:

  • process improvements
  • product improvements
  • quality standards
  • skills development and
  • energy efficiency improvements.

Qualifying manufacturers may qualify for a non-taxable cash grant of between 20% and 35% of the qualifying investment made. Application is required to be submitted at least 120 days (People Carrier Manufacturers) and 90 days (Component Manufacturers and tooling manufacturers) prior to the commissioning of the qualifying investment.

AGRO-PROCESSING

Agro-Processing Supporting Scheme

The Agro-Processing Supporting Scheme (APSS) is a cost sharing grant, aimed at stimulating investment by South African agro-processing/ beneficiation enterprises. The APSS is targeted at six sub-sectors as follows:

  • Food and beverage value addition and processing (For wine making only 70% black owned and managed entities will be supported. For carbonated soft drinks only entities with a turnover of less than R5 million will be supported)
  • Furniture manufacturing
  • Fibre processing
  • Feed production
  • Fertilizer production
  • Essential oil production
 

Qualifying costs may be incentivised at 20% to 30% up to a maximum of R20 million.

Such qualifying costs include:

  • owned buildings
  • new machinery and equipment
  • commercial vehicles.
 

Competitiveness Improvement Costs, where these costs may include:

  • conformity assessment certification
  • information technology systems
  • logistics improvements
  • resource and energy efficiency improvement processes
  • technology transfer

INFRASTRUCTURE

Critical Infrastructure Programme

The Critical Infrastructure Programme (CIP) is a cost sharing grant, supporting the construction of infrastructure projects. Ordinarily, the grant provides for an incentive of 10% to 30% of the qualifying infrastructure cost, limited to a maximum benefit of R 50 million. Qualifying projects are ultimately required to be a level 6 B-BBEE contributor.

Qualifying infrastructure projects need to demonstrate that they ultimately facilitate increased trade. Examples of qualifying projects include:

  • Bridges
  • Industrial parks
  • Roads
  • Renewable energy and associated generation
  • Pipelines
  • Purification sewers and
  • Telephone lines

Application for the CIP should be made prior to the infrastructure construction commencing.

EXPORT

Export Marketing Investment Assistance

The Export Marketing Investment Assistance (EMIA) programme has been developed to promote and develop existing and new exporters in South Africa.

A range of incentive benefits are available to eligible companies through Primary Market Research and Foreign Direct Investment.

A cash incentive may be claimed in respect of individual exhibition event participation where costs may be claimed in respect of:

  • Sample transportation
  • Exhibition rental space
  • Stand construction
  • Telephone and internet fees
  • Economy class air ticket
  • Exhibition stand set up fees.

Other eligible costs under the EMIA include:

  • a daily subsistence allowance
  • marketing material costs
  • patent registration costs.
 

Application is required to be submitted at least 3 months prior to the applicable event.

AQUACULTURE

Aquaculture Development and Enhancement Programme

The Aquaculture Development and Enhancement Programme (ADEP) is an investment-based cash incentive programme available to those companies engaged in primary, secondary and ancillary aquaculture activities. Registered higher education institutions and licensed and/or registered research institutions may qualify. Qualifying activities may be either marine or freshwater based and include Fish hatcheries and fish farms together with the production, processing and preserving of aquaculture fish. The ADEP is available to both new and expanding operations supporting investment in:

  • Machinery and equipment (New and used)
  • Bulk infrastructure
  • Owned land and/or buildings
  • Leasehold improvements and
  • Competitiveness improvement activities
    • Conformity assessment
    • Skills development
 

Qualifying companies must have a valid level 4 B-BBEE certificate and may recover an incentive of 30% – 50% of qualifying costs.

BLACK BUSINESS

Black Industrialist Scheme

The Black Industrialists Scheme (BIS) objectives are to:

  • Accelerate the quantitative and qualitative increase and participation of Black Industrialists in the national economy, selected manufacturing sectors and value chain; as reflected by their contribution to growth, investment, exports and employment and
  • Create multiple and diverse pathways and instruments for Black Industrialists to enter strategic and targeted manufacturing sectors and value chains.

Characteristics of a Black Industrialist:

  • Exercises control over the business
  • Takes personal risk in the business
  • Makes a long-term commitment to the business and is a medium to long term investor
  • Be directly involved in the day to day running of the operating and have the requisite expertise in the sector

Characteristics of a Black Industrialist applicant entity:

  • Greater than 50% black ownership and management control
  • Conducts business in the Manufacturing sector with particular reference to Industrial Policy Action Plan (IPAP) focus areas
  • Be a qualifying registered legal entity
  • Have a valid tax clearance certificate
  • Be a new operation or be involved in the expanding/ upgrading of an existing operation
  • Have a valid level 4 B-BBEE contributor certificate
  • Have a minimum project investment of R30 million
  • Secure / increase employment
  • Not commence any part of the project until such time as an approval is obtained

An approved applicant may recover a grant of between 30% – 50% calculated against the qualifying costs incurred, up to a maximum of R50 million where this percentage is based on a combination of economic benefit criteria and the percentage of black ownership.

Qualifying costs include the following:

  • Capital investment
  • Feasibility studies
  • Post investment support such as training and mentorship
  • Business development services

Application approval is required to be secured in advance of the investment project being contracted for.

RESEARCH AND DEVELOPMENT

All companies engaged in all sectors of the economy of South Africa who undertake scientific and technological research may apply for a 150% deduction in respect of operational R & D. This represents a 13,5% tax saving on all qualifying R & D undertaken.

Application to the Department of Science and Technology is required in advance of qualifying expenditure being undertaken. Approval in respect of such qualifying expenditure is required by the Minister of Science and Technology.

The programme focuses on:

  • Innovation in creating new products, processes, devices and techniques or
  • significantly improving existing ones

 

AUTOMOTIVE
STRATEGIC PARTNERSHIPS

EDC enjoy a strategic working partnership with MICB (Motor Industry Customs Brokers) where collectively we are able to offer our automotive clients a comprehensive service offering in respect of the AIS administration and management, together with APDP, SARS Customs Import and Export Regulations, South African Local Content Programmes and ITAC Policies and Procedures.

www.micb.co.za

Allan Corbett

+27 (0) 41 365 2151

allan@micb.co.za

AGRO-ENERGY FUND

Coming Soon

AGRI-BEE

Coming Soon

GREEN TOURISM INCENTIVE

Coming Soon

LOCAL AND REGIONAL ECONOMIC DEVELOPMENT

Coming Soon