Income Tax Act, 1962 (Act No. 58 of 1962)RegulationsRegulations made under Section 12I2. Prerequisites for industrial policy projects |
Skills development
| 2.1 | For the purposes of determining whether a project will upgrade an industry by providing skills development in accordance with sections 12I(7)(a)(iv)(aa) and 12I(10)(e), the Minister of Trade and Industry, after taking into consideration the recommendations of the adjudication commIttee, must be satisfied that— |
| (a) | the Industrial project will Incur expenditure in respect of the cost of training (including the cost of implements, utensils, articles and materials utilised exclusively in respect of that training) that is at least equal to an average of two per cent of the annual wage bill of the project during the additional training allowance benefit period; and |
(b) the expenditure contemplated in paragraph (a) is likely to result in the upgrading of industrial skills,
taking into account only training that is accredited by the South African Qualifications Authority (SAQA) or training that the adjudication committee determines to be equivalent to training accredited by SAQA.
[Regulation 2.1 substituted by section 3(a) and (b) of Notice No. R. 633, GG 35611, dated 20 August 2012]
Energy efficiency
| 2.2 | For the purposes of determining whether a project will upgrade the industry by utilising new technology that results in improved energy efficiency as contemplated in sections 12I(7)(a)(iv)(bb) and 12I(10)(g), the Minister of Trade and Industry, after taking into consideration the recommendations of the adjudication committee, must be satisfied that— |
| (a) | in the case of a brownfield project, the project will attain an energy efficiency improvement of at least 10 per cent from a baseline, as determined for the 12 month period prior to the application, as certified by the South African National Energy Development Institute, by the end of the additional investment allowance benefit period; |
| (b) | in the case of a greenfield project, the project will utilise modern, viable energy-efficient equipment and processes, as compared to the industry sector relative to that industrial project, throughout the additional investment allowance benefit period (not taking into account any period before the month in which the industrial policy project reaches 50 per cent of its production capacity), as certified by the South African National Energy Development Institute, by the end of the additional investment allowance benefit period. |
[Regulation 2.2 substituted by section 3(c), (d) and (e) of Notice No. R. 633, GG 35611, dated 20 August 2012]