Business Incentives

   
Small/Medium Enterprise Development Programmes (SMEDP) – Manufacturing 

A two-year, tax-free cash incentive applicable to enterprises investing capital in new projects or expanding an existing project. It is based on qualifying assets (plant and machinery, owned or rented land and buildings, and development equipment) up to R100 million and is designed to encourage local and foreign capital investment so as to create jobs and distribute wealth.
 
SMEDP – Tourism
A two-year, tax-free cash incentive applicable to enterprises investing capital in new projects or expanding an existing project that are engaged in the short term accommodation, tour operation, railway or water transport for tourist. It is based on qualifying assets (owned or rented buildings, furniture and equipment and vehicles used for the transportation of tourists) up to R100 million and is designed to encourage local and foreign capital investment so as to create jobs and distribute wealth.
 
SMEDP – Other industries
A two-year, tax-free cash incentive applicable to enterprises investing capital in new projects or expanding an existing project. It is based on qualifying assets up to R100 million and is designed to encourage local and foreign capital investment in the biotechnology, agriculture and call centres so as to create jobs and distribute wealth.
 
Foreign Investment Grant (FIG)
FIG encourages foreign business investment in manufacturing companies by lowering the actual qualifying transportation costs or 15 per cent of the cost of new plant and machinery acquired abroad not exceeding R3 million. It is applicable to South African companies with a 50 per cent or foreign direct shareholding.
 
Skills Support Programme (SSP)
SSP encourages investment in training, improving industrial systems and creating opportunities for bringing in new and advanced skills. It is applicable to new or expanding enterprises that have qualified for the SIP.SMEDP and training which has been approved by the department of labour.
 
It includes a Training Grant of 50 per cent with a 30 per cent limit of the annual wage bill, a Learning Programme Development Grant up to R3 million, and a Capital Grant for the installation of new training capacity calculated at 10 or 50 per cent of total cost of machinery and equipment.
 
The Tourism Enterprise Support Programme (TEP)
The TEP helps large operators, investors, SMMEs and (HDEs) develop and expand tourism enterprises by identifying linkages and business opportunities, and further matching buyers and suppliers of goods and services.  The TEP also helps enterprises obtain ISO/SABS quality certification, proper business planning, packaging legal advice, technology needs and marketing. It is applicable to business with a 50 per cent or more of its revenue from tourism.
 
Export Marketing & Investment Assistance (EMIA)
EMIA assists South African exporters which are registered with the Commissioner of Customs & Excise to identify and establish export markets as well as attracting foreign direct investment into South Africa. It includes portion of specified costs relating to primary market research, outward selling trade missions, exhibition assistance, assistance to specific industry sector, outward and inward investment missions