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Income Tax Act, 1962 (Act 58 of 1962)

Tax Holiday Regulations

2. Investment requirements

 

 

1) The amount of capital invested in-
a) land whereon and buildings wherein the process of manufacture is to be carried on; and
b) machinery and plant to be used directly in the process of manufacture,

must exceed R3 million.

 

2) The amount of capital invested in land and buildings is calculated by adding-
a) the cost of land and buildings owned or to be owned by a company; and
b) the capitalised value of land and buildings leased or to be leased, capitalised by that company at 15 per cent per annum.

 

3) The amount of capital invested in machinery and plant is calculated by adding-
a) the cost of machinery and plant owned or to be owned by a company; and
b) the capitalised value of machinery and plant leased or to be leased to be reflected in the balance sheet of that company.