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Finance minister gives tax incentives for SEZ located companies

Minister of Finance, Nhlanhla Nene, has given the go ahead for tax deductions for companies operating in a special economic zone. Coega is amongst the six with approved preferential tax benefits.

“It gives us great joy that the Minister has approved the preferential tax treatment as it forms part of a suit of incentives we use in attracting investors to the Coega SEZ,” said Dr Ayanda Vilakazi, CDC Unit Head Brand, Marketing and Communication.

“The Coega SEZ being amongst the six SEZs with an approved status provides a long awaited relief for the qualifying companies operating within the SEZ.”

The incentives, which have been approved in terms of section 12R of the Income Tax Act (s12R) will also serve as good news for some of Coega’s largest foreign investors including First Automotive Works (FAW) valued at R600 million and BAIC SA with an investment value of R11 billion,

BAIC SA recently launched their vehicle assembly manufacturing plant at the Coega SEZ.

“The announcement by the minister goes a long way in wetting investor appetite and adds to the attractiveness of various SEZ’s.

“As the CDC, the incentives continue to expand the capacity of Coega SEZ to invest in more innovative measures in enabling growth.” Concluded Dr Vilakazi.

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