The SEZ Programme
The ELIDZ is one of the five operational SEZs in South Africa. The South African Industrial Development Zone’s (IDZ) are transitioning into Special Economic Zones (SEZ) a legislative move that aims to support balanced regional industrial growth by fostering the development of more competitive and regional economies.
SEZs are generally defined as geographically designated areas of a country that are set aside for specially targeted economic activities, and supported through special arrangements and systems that are often different from those that apply to the rest of the country. In different countries, SEZs operate through a variety of forms with different functions. They include free ports, free trade zones; industrial development zones (IDZs) and sector development zones.
Benefits of operating within an SEZ
A number of incentives are made available to ensure SEZs growth, revenue generation, creation of jobs, attraction of Foreign Direct Investment (FDI) and international competitiveness. These SEZ incentives include:
- Preferential 15% Corporate Tax
- Businesses that are located in a Special Economic Zone may be eligible for tax relief, including the reduced rate of corporate income taxation 15% for the period 2014-2024 (10 years). To qualify, the following conditions must be met:
- The company must be located in a SEZ that is approved by the Minister of Finance (in consultation with the Minister of Trade and Industry);
- It must be incorporated or effectively managed in South Africa;
- At least 90% of the income must be derived from the carrying on of business or provision of services within that SEZ; and
- The company must not be engaging in the following activities, based on the SIC code issued by Statistics South Africa:
Operational Investors on our platform
Worth of Private Sector Investment
Active jobs within the ELIDZ