Regulations for South Africa's long-awaited R20-billion tax incentive for large-scale industrial projects have been published, potentially opening the way for significant new manufacturing sector investments.

The incentive will officially continue until December 31, 2014, but could be closed earlier should the R20-billion threshold be reached before that date.

The publication of the regulations was delayed to enable the Department of Trade and Industry (DTI) to align the incentive with the latest version of South Africa's industrial policy action plan, or Ipap2.

Under the Strategic Investment Project Programme (S12I), investors in greenfield and brownfield projects involving capital of more than R200-million, but less than R1.6-billion, can apply for a tax allowance equal to between 35% and 55% of a project's value. Projects worth more than R1.6-billion will be considered, but the tax benefits arising would be limited to the maximum threshold of R1.6-billion.

Reported by Engineering News