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Blueprint Consulting acts on behalf of qualifying clients in helping them access official investment incentives from the Department of Trade and Industry (DTI). Our service include identifying the relevant incentive programmes our clients, applications to the government on their behalf, and on approval we process claims and facilitate final receipt of their incentive payment.
EIP (Enterprise Investment Programme)
We help companies receive the maximum tax free cash grant from the Enterprise Investment Programme, which is an incentive grant replacing the Small Medium Enterprise Development Programme. It has two sub programmes with specific industry focus on manufacturing and tourism.
The two sub programmes are the Manufacturing Investment Programme (MIP), and the Tourism Support Programme (TSP). These programmes are legislated to run for a six year period ending around July 2014. Applications under the new incentive programme must be made at least three months prior to the start of production for an establishment or expansion project. Applicants are further required to apply and receive approval for the investment prior to acquiring investment assets.
The benefits are calculated as follows:
· Total Qualifying Investment less than R 5 million: The benefit is calculated at 30% over a three year period of the total qualifying investment.
· Total Qualifying Investment greater than R 5 million and less than R 200 million: The benefit is calculated on a regressive scale from 30% to 15%over a two year period of the total qualifying investment.
· The total benefit is limited to a maximum of R 30 million over the period of the incentive term.
The following broad assets would qualify for incentivisation under the EIP:
· Capitalised machinery and equipment
· Owned land and buildings
· Rented land and buildings – limited to 20% of machinery and equipment qualifying value
· Customised commercial vehicles (eg refrigerated trucks)
Foreign Investment Grant (FIG) is available to foreign owned legal entities applying for benefits under the MIP in order to assist with the costs of relocating machinery and equipment to SA.
The FIG is not available to legal entities applying for TSP benefits. The available benefit under the FIG is calculated at 15% of the qualifying cost limited to a maximum of R 10 million.
Only incorporated legal entities can apply for establishment and expansion investment benefits under both the MIP and TSP. Legal entities in the clothing and textile sector can apply for specific upgrading benefits.
Broad Based Black Economic Empowerment (BBBEE) is a requirement for both the MIP and TSP. BBBEE compliance certificates are required for submission of both applications and claims.
PAA (Productive Asset Allowance)
We administer the incentive geared towards first tier automotive component manufacturers supplying Original Equipment components to motor vehicle manufacturers. Incentive benefits total 20% of qualifying investment, payable over a five year period in the form of a duty credit certificate to offset import duties on built up vehicle imports.
IPP (Industrial Policy Projects)
This incentive is still being finalized by the Department of Trade and Industry (DTI) which has been working with the National Treasury on the guidelines for tax incentives related to Governments industrial policy strategy.
Draft regulations have been released for public comment and it is hoped that the regulations will be finalised by mid 2009. The draft regulations define the pre-requirements for an industrial policy project to qualify for tax incentives and the point scoring system applicable to greenfield and brownfield industrial projects. It is planned that Government would spend R5,6-billion over five years on the tax incentives related to Governments industrial policy.
EIP (Enterprise Investment Programme)
We help companies receive the maximum tax free cash grant from the Enterprise Investment Programme, which is an incentive grant replacing the Small Medium Enterprise Development Programme. It has two sub programmes with specific industry focus on manufacturing and tourism.
The two sub programmes are the Manufacturing Investment Programme (MIP), and the Tourism Support Programme (TSP). These programmes are legislated to run for a six year period ending around July 2014. Applications under the new incentive programme must be made at least three months prior to the start of production for an establishment or expansion project. Applicants are further required to apply and receive approval for the investment prior to acquiring investment assets.
The benefits are calculated as follows:
· Total Qualifying Investment less than R 5 million: The benefit is calculated at 30% over a three year period of the total qualifying investment.
· Total Qualifying Investment greater than R 5 million and less than R 200 million: The benefit is calculated on a regressive scale from 30% to 15%over a two year period of the total qualifying investment.
· The total benefit is limited to a maximum of R 30 million over the period of the incentive term.
The following broad assets would qualify for incentivisation under the EIP:
· Capitalised machinery and equipment
· Owned land and buildings
· Rented land and buildings – limited to 20% of machinery and equipment qualifying value
· Customised commercial vehicles (eg refrigerated trucks)
Foreign Investment Grant (FIG) is available to foreign owned legal entities applying for benefits under the MIP in order to assist with the costs of relocating machinery and equipment to SA.
The FIG is not available to legal entities applying for TSP benefits. The available benefit under the FIG is calculated at 15% of the qualifying cost limited to a maximum of R 10 million.
Only incorporated legal entities can apply for establishment and expansion investment benefits under both the MIP and TSP. Legal entities in the clothing and textile sector can apply for specific upgrading benefits.
Broad Based Black Economic Empowerment (BBBEE) is a requirement for both the MIP and TSP. BBBEE compliance certificates are required for submission of both applications and claims.
PAA (Productive Asset Allowance)
We administer the incentive geared towards first tier automotive component manufacturers supplying Original Equipment components to motor vehicle manufacturers. Incentive benefits total 20% of qualifying investment, payable over a five year period in the form of a duty credit certificate to offset import duties on built up vehicle imports.
IPP (Industrial Policy Projects)
This incentive is still being finalized by the Department of Trade and Industry (DTI) which has been working with the National Treasury on the guidelines for tax incentives related to Governments industrial policy strategy.
Draft regulations have been released for public comment and it is hoped that the regulations will be finalised by mid 2009. The draft regulations define the pre-requirements for an industrial policy project to qualify for tax incentives and the point scoring system applicable to greenfield and brownfield industrial projects. It is planned that Government would spend R5,6-billion over five years on the tax incentives related to Governments industrial policy.
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