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Income Tax Act, 1962 (Act No. 58 of 1962)


Regulations made under Section 12G(7)

1. Definitions



(1.1) In these regulations, unless the context otherwise indicates, any word or expression to which a meaning has been assigned in the Income Tax Act, 1962, bears the meaning assigned thereto, and—


"date of commercial production"

means the month in which the project reaches 50 per cent of its production capacity;


"the specified period"

in relation to any condition that a strategic industrial project is required to meet, means the period beginning from the date of commercial production and continuing for a period of three years after that date, or such shorter or longer period approved by the Minister on recommendation of the adjudication committee;


"South African production"

excludes for the purposes of regulations 2 and 3, any production of any other project which has been approved as a qualifying strategic industrial project under the provisions of section 12G of the Income Tax Act, 1962.


Computer and computer related activities as well as research and development activities


(1.2) For the purposes of paragraph (b) and (c) of the definition of "industrial project" in section 12G(1), "computer activities and computer related activities" and "research and development" shall have the same meaning as defined in terms of the most recent Standard Industrial Classification as issued by Statistics South Africa under the following headings—


(a)        Computer and Computer Related Activities



Industry description


Hardware consultancy


Software consultancy and supply


Data processing (other than standard secretarial services)


Data base activities


(b)        Research and Development



Industry Description


Research and experimental development on natural sciences and engineering