Turn Your Business Around With EIP Manufacturing Incentives
Both local and foreigner-owned business entities are eligible to seek an Enterprise Investment Programme manufacturing incentive, which includes companies, co-operatives and close corporations. The grant is available for both new and expanding entities.
Types of Grants
- Small Projects – 30% tax-free grant manufacturing incentives up to R5 million in qualifying assets, payable over 3 years.
- Medium Projects – 15% to 30% tax-free grant manufacturing incentives between R5 million and R30 million in qualifying assets, payable over 2 years.
- Large Projects – 15% tax-free grant of R30 million or more in qualifying assets, payable over 2 years.
Qualifying assets are defined as the following: Machinery and equipment (not including office equipment), rented or owned buildings and land, second-hand machinery, vehicles and equipment, and customized commercial vehicles.
Expanding Entity Manufacturing Incentives
Expanding entities are now eligible to receive cash incentives for the purpose of investing in new plant or machinery. Entities will be able to apply for grants of up to 35% of the value of their planned investments.
FIG – Foreign Investment Grant
A recently approved manufacturing incentives programme for new manufacturing businesses, the FIG is available to any South African entity in which a minimum of 50% of its shareholdings are foreign owned.
The FIG has been designed to help foreign-owned entities offset relocation costs that businesses incur in the first 12 months following the start of production. In order to claim the FIG grant, entities must meet the following requirements:
- 50% or greater foreign shareholdings
- Relocated machinery must be new, fully paid for using foreign capital and free of all debt.
Foreign-owned entities can claim for the following expenses related to relocation – freight transportation costs, statutory expenses (including duty, handling, agency costs), insurance, offloading costs and airfare + accommodation for installation technicians.
The FIG manufacturing incentives are limited to R10 million, or 15% of the relocated machinery’s value, or the actual relocation costs of the qualifying expenses, whichever is lowest.
Apply for EIP manufacturing incentives today – contact us to find out how:
Or call one of our advisors for more information on:
Tel: +27 (012)348 5871
Fax: +27 (012)348 3287