Gain Investment in your Business through EIP Tourism Incentives
Both locally and foreign-owned tourism industry business entities can apply for EIP tourism incentives, which include companies, co-operatives and close corporations. These grants are available for both new and expanding entities.
To be eligible for tourism incentives through the EIP scheme, the project must be located away from the Cape Town, Durban and Johannesburg metropolitan centers, although an exception is made for projects located in these areas where unemployment is greater than 25% (marginalized areas). For example, Cape Town CBD qualifies under this exception.
Tourism Incentives Eligibility Requirements
To qualify, the project under which an entity is applying for the EIP Tourism grant must achieve a minimum score of 65 or over on the Generic Scorecard and must also be a Level 4 BB-BEE contributor. New entities (those in business less than 1 year) or those that have an annual turnover of less than R5 million are given automatic Level 4 status.
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.
The following are defined as qualifying assets: Machinery and equipment (not including office equipment), rented or owned buildings and land, tourism transportation vehicles and second-hand equipment, and tourism transport vehicles.
Applicable tourism projects include: Passenger transportation services, entertainment or recreation services, accommodation services
Tourism Expansion Projects
Entities looking to increase their current tourist capacity or the historic cost value of their equipment and furniture are also eligible to apply for tourism incentives under the EIP scheme.
Apply for EIP tourism 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