South Africa

South Africa

Guidelines for extending the automotive investment scheme to medium and heavy commercial vehicle manufacturers

27 Nov 2014

South Africa approved guidelines for the new Medium and Heavy Commercial Vehicles-Automotive Investment Scheme. It provides a non-taxable cash grant of 20% of the value of qualifying investment in productive assets by medium and heavy commercial vehicles manufacturers, and of 25% of the value of qualifying investment in productive assets by component manufacturers and tooling companies for medium and heavy commercial vehicles. An additional non-taxable cash grant of 5% of the value of qualifying investment in productive assets may be available to projects that meet at least two of the following economic benefit criteria: tooling; R&D in South African-related components of the project; employment creation; strengthening the automotive supply chain; value-addition; and empowerment.