OR Tambo IDZ has access to a suite of incentives packaged by National Government to promote foreign direct investment in the SEZs. Provincial and Local Government incentives are also in the process of being packaged
Foreign Investment Grant
To compensate qualifying foreign investors for the cost of moving qualifying new machinery and equipment abroad to South Africa
Duty-free imports
of raw materials or equipment utilised for production in the Zone
Tax deductions
of up to ZAR900m in respect of projects above ZAR200m
A lower corporate tax of 15%
vis-àvis the standard 28% is proposed for companies housed within the SEZ
Exemption from Value Added Tax
for goods produced in the Zone for export
All employers employing low-salaried employees (below R60 000 per annum) in any special economic zone will be entitled to the.employment tax incentiveincentive, which reduces an employer’s cost of hiring people through a costsharing mechanism with government.
Provision of working capital loans through a metals financing scheme
Businesses operating within approved SEZs will be eligible for an accelerated depreciation allowance on capital structures (buildings)at a rate equal 10 per cent per annum over 10 years
