Following the promulgation of the Special Economic Zone Act in 2014 (SEZ Act of 2014) which then saw proclamation for commencement on the 9th of February 2016, the Minister of Finance, Nhlanhla Nene approved the six SEZs preferential tax treatment status in terms of section 12R of the Income Tax Act (“s12R”).
“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,” says, 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,” adds Dr Vilakazi.
The incentives, 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, which 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.” Concludes Dr Vilakazi.