Contents objective



Yüklə 445 b.
tarix29.07.2018
ölçüsü445 b.
#61765



CONTENTS

  • Objective

  • Qualifying Industry Sectors

  • Mandatory requirements

  • Point scoring

  • Benefit

  • Admin Process

  • Statistics

  • Monitoring



STRATEGIC INDUSTRIAL PROJECTS

  • SIP – 12G of the Income Tax Act

  • Additional industrial investment allowance – R10b

  • 1 August 2001 to 31 July 2005

  • Objective

    • Encourage investments from local and foreign investors
    • Contribute to the growth, development and competitiveness
    • Upgrade industries
    • Create employment opportunities


QUALIFYING INDUSTRY SECTORS

  • QUALIFYING INDUSTRY SECTORS

  • Manufacturing – SIC 3

  • Computer and computer related activitie

  • Research and development activities

  • MANDATORY REQUIREMENTS

  • Investment in new qualifying assets more than R50m

  • Increase annual production

  • No substantially displace production and /or jobs

  • Demonstrate long term commercial viability

  • Promote employment and production

  • Not concurrently benefiting from certain incentives



POINT SCORING



QUALIFYING CRITERIA Maximum points - 10



ADMIN PROCESS



APPROVED PROJECTS PER SECTOR AND PROVINCE



APPROVALS BY SECTOR





STATISTICS

  • Greenfields or Brownfields projects

  • 7 Greenfields projects

  • 28 Brownfield projects

  • Foreign Direct Investment and Local Investment

  • 4 Foreign Direct Investment

  • 41 Local Investment

  • Projects – Complied but no budget available

  • 13 Projects with R4.9b investment

  • Additional allowance of R3.06b required



ESTABLISHED PROJECTS



IMPACT ON JOB CREATION

  • IMPACT ON JOB CREATION



MONITORING

  • Prescribed by section 12G of the Income Tax

  • Submit annual progress report and financial statements

  • Evaluation report

  • Recommendation by Adjudication Committee

  • Minister – Accept, amend or disqualify

  • Inform client

  • Inform Commissioner of SARS

  • Report to parliament



SIP Review (Feb 2004)

  • Independent assessment commissioned by the dti in conjunction with the NT

  • A survey amongst 19 approved projects; 8 in-process applications; 4 prospective applicants; 4 tax consulting firms

  • Study objective to assess need for amendments to the programme in order to enhance project selection.

  • Key questions:

    • Perceptions on Marketing and Promotion of SIP
    • Assessment of Impact of SIP on the firm’s Investment Decision
    • Assessment of the suitability of the project selection criteria
    • Perceptions of Administrative Processes.


SIP Review (Feb 2004)

  • Awareness challenges: Of the 75 manufacturing Capex projects announced by IDC (Jan 2001 to Jun 2003), only 7 of the 38 projects potentially eligible for SIP applied

  • Chemicals, metals dominance: Most applicants were from sectors with a natural diversity in products, processes and technology, which can easily match the industrial upgrading criteria

  • Only 3 out of 19 approvals were FDI: SIP seemed to attract investors with existing operations in SA that are able to exploit the tax allowance soon after project implementation

  • Impact on investment decision: SIP was effective in influencing investment decision of 2/3 of approved projects

  • Bias for capital intensive projects: due to the R50m investment requirement, SIP attracted more capital-intensive that labour-intensive projects. The projects however had potentially larger spin-offs for other economic activities

  • Cost-benefit analysis: In a longer term, the additional tax revenue from SIP approved project will more than pay for the cost of the incentive (tax allowance)



SIP Review (Feb 2004)

  • Impact analysis: A further analysis is necessary to determine the real economic impact of the SIP approved projects that have established to date

  • Better targeting: Future [tax] incentive programmes can be structured to better target strategic (including FDI) in line with the National Industrial Policy Framework

  • Maintain good practices: Independent review by Paul Babour (Dec 2006) indicates that SIP has a sound design framework, has transparent processes and the Act requiring regular reviews and reporting to parliament.





Yüklə 445 b.

Dostları ilə paylaş:




Verilənlər bazası müəlliflik hüququ ilə müdafiə olunur ©muhaz.org 2024
rəhbərliyinə müraciət

gir | qeydiyyatdan keç
    Ana səhifə


yükləyin