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


Regulations made under Section 12G(7) of the Income Tax Act, 1962 (Act No. 58 of 1962)



For the purpose of—

(a) regulation 3.2(b), an "industry cluster"—
(i) involves a concentrated subset of industries interconnected by a flow of purchases and sales that are stronger than the rest of the economy; and
(ii) entails linkages throughout the value chain, from suppliers to end producers as well as support and specialised infrastructure;
(b) regulation 3.2(c), the value-added shall be determined in accordance with the formula—


Gross Project Receipts – Material Inputs

Gross Project Receipts


(i) "gross project receipts" include all gross income other than income from investment and finance (such as interest, dividends, sales of financial instruments, and currency transactions); and
(ii) "material inputs" include the direct cost of all raw materials, intermediate products, energy and water used to produce gross project receipts;
(c) regulation 3.3(a), a business will not qualify as a small, medium or micro enterprise where—
(i) more than 200 full-time employees are formally employed by that business; or
(ii) the annual turnover of that business exceeds R50 million; and
(d) regulation 3.4, jobs created from indirect employment will be determined as jobs added due to the increased sale of goods and services directly acquired by the project.