PROGRESS REPORT

SECTION 12I TAX ALLOWANCE

PROGRAMME (INDUSTRIAL POLICY
PROJECTS)
APPLICANT / PROJECT NAME:

________________________________

Period:__________________________

Note:
 Refer to Section 12I of the Income Tax Act 1962 (Act No. 58 of 1962), specifically paragraph 11
and 12 and the Regulations as promulgated in Government Gazette number 33385 of 23
July 2010
 Each page of the application form and all the accompanying documents must be
initialled
 All sections of this form must be completed by an authorised official of the applying
project.

Please return completed forms by courier or hand to:

Secretariat: Section 12-I Tax Allowance Programme

The Enterprise Organisation 2nd Floor, Utangamiri Building, the dti Campus
Private Bag X86 77 Meintjies Street, Sunnyside
Pretoria 0001 Pretoria

For more information contact: Ms Faith Sibanyoni

Telephone: (+27) 12-394 1342
Fax: (+27) 12-394 2342
E-mail: [email protected]
Website: www.thedti.gov.za

DATE STAMP OF RECEIPT

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 Section 12I Tax Allowance Programme
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ANNUAL PROGRESS REPORT

For the period …../…../20….. to …../…../20…..

APPLICANT CONTACT DETAILS

Name of business (a registered name):

Business registration number: Income tax number:

Financial year-end:

Physical address for the serving of legal documents and other notices:

Postal address:

Code

Contact person: Position:

Contact details: Tel ( ) Fax ( )

Cell ( ) Email:

CONSULTANT CONTACT DETAILS

Name of business (a registered name):

Business registration number: Income tax number:

Financial year-end:

Physical address for the serving of legal documents and other notices:

Postal address:

Code

Contact person: Position:

Contact details: Tel ( ) Fax ( )

Cell ( ) Email

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Section 12I Tax Allowance Programme
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REGISTERED EXTERNAL AUDITOR

Name of business (a registered name):

Contact person: Registration number:

Representative body:

Postal address:

Code

Contact details: Tel ( ) Fax ( )

Cell ( ) Email:

OWNERSHIP STRUCTURE AND SOURCES OF FINANCE FOR THE PROJECT

Shareholder/member/ owner(s) Equity (R 000) % Equity Country of Domicile

LOCATION OF PROJECT

Physical / street address of the project

Name of proclaimed industrial township /suburb

City / Town
Located in an Industrial Development Zone YES  NO 
Province

PRODUCTION DATE

Envisaged
Description Actual date
date
Production start date (when assets are brought into use)
Date of commercial production (when production capacity >=50%
*Please provide a copy of Engineers Ready for Commissioning report

IS THE PROJECT RELATED TO OTHER DTI INCENTIVE PROJECT(S)?

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Section 12I Tax Allowance Programme
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Name of the dti incentive project Nature of relationship

PROVIDE A DESCRIPTION OF THE PRODUCT(S) AND PROCESS(ES)

% of total
Product(s) Process(es) SIC code
Turnover

HAS ANY PROCESS OR PRODUCT CHANGED SINCE THE DATE OF APPROVAL? IF YES PROVIDE DETAILS.

PROJECT PLAN & BUDGET

% Months Starting Finishing Actual cost

Estimated
Com ahead or Date Date
Activity description duration in
plete behind
months
schedule

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Section 12I Tax Allowance Programme
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TOTAL ASSETS INVESTED IN THE PROJECT TO DATE OF THIS REPORT

Are the
Date on assets
Date on
which Date on being
Sourced which
the which all acquired/
Locally more
assets the contracted Total cost of
New or or than 50%
Description of Asset have assets from assets
Used? Imported assets
been will be connected
(indicate will be
acquired, brought person(s)?
country) brought
contract into use If yes,
into use
ed for provide
details
Plant and machinery:

Sub-total
Buildings:

Sub-total
All other assets (non-qualifying):

Sub total
Total assets (cost as per balance sheet)

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Section 12I Tax Allowance Programme
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MARKETS TO WHICH THE PROJECT IS SELLING AND THE SALES IF THE PROJECT IS IN OPERATION

Current data
List markets Unit of measure
20___
Volume
South Africa
Rand Value (R)

Export Markets, List: Volume

Rand Value (R)

Volume

Rand Value (R)

Volume

Rand Value (R)

Volume

Rand Value (R)

INNOVATIVE PROCESSES
Demonstrate the material significance of your product(s) or process(es) in terms of production time, quality, longevity
and reduced cost:

Production Time

Quality

Longevity

Reduced Cost

Please provide any additional information that may proof the innovative nature of the technology used/ to be used:

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Section 12I Tax Allowance Programme
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ENERGY EFFICIENCY
Please provide the planned and actual energy savings in the table below:
Period of Energy Used/Usage Total Utility Cost Number of Units
Measurement (kWh/mMh) produced

Baseline 12 months prior to

application

Planned Energy
Efficiency Savings

%
% Reported Savings

Actual Energy
Efficiency Savings

%
% Reported Savings

Final audited
Savings (SANEDI)

%
% Reported Savings

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Section 12I Tax Allowance Programme
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IMPORTANT NOTE: Please attach the SANEDI energy efficiency certificate confirming the above information.

Provide a short summary below of the most important measures/technology implemented or to be implemented that
would result in the energy efficiency savings indicated above.

BUSINESS LINKAGES
Criteria Details
Product previously imported
(More than 60% imported)

Exports

Is there a shortage in SA?

Will output of project improve efficiency

of industrial cluster

Flexibility of raw materials &

Availability in SA

Contribution to global competitiveness:

a) Scope of investment to produce

similar goods in SA

b) How will the project contribute to the

global competitiveness of downstream
users in South Africa relative to their
international competitors, in particular
with respect to a comparison
between the price they face in the
domestic market in relation to
comparable prices in the project's major
export markets.
Competition

Please provide full details on any

investigations and findings by
competition authorities either in South
Africa or in other jurisdictions in relation
to the company as and in particular in
relation to the specific products that the
project will produce and sell.
Related industries and institutions
involved with the project

Pricing Practices

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Section 12I Tax Allowance Programme
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Criteria Details
a) Provide a detailed elaboration of the
pricing methodology by which sales
prices for the domestic market are
arrived at;

b) Provide a detailed elaboration of the

pricing methodology by which sales
prices for major export markets are
arrived at;

c) What has the actual selling price per

product in the domestic market over the
last three years been and the projected
selling price over the coming year;

d) What has the actual selling price per

product in major export markets over
the last three years been and the
projected selling price over the coming
year.
Distribution Channels

Provide detailed information on domestic

distribution channels used or to be used
including a breakdown of direct sales of
the products to the final customer versus
intermediate sales through agents or
traders.

SMME PROCUREMENT

 Where SMME’s have been contracted, provide details below.

 If no SMME’s have been contracted indicate the nature and estimated values of raw material, intermediate goods and
services that may be required from SMME’s

List raw materials Suppliers Quantities Projecte Actual

d Cost Cost

List intermediate products Suppliers Quantities Projecte Actual

d Cost Cost

List services Suppliers Quantities Projected Actual

Cost Cost

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 Section 12I Tax Allowance Programme
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DIRECT AND INDIRECT EMPLOYMENT

Average for
a) Full time direct employment
current year

b) Indirect employment (please indicate under “Motivation” how this figure(s) were calculated)

Description Total Motivation

SKILLS DEVELOPMENT

Please provide the latest skills development plan in the table below (If space is insufficient, kindly attach an annexure):

External
Internal training
(on the (course / SAQA
Trainin Remarks
job) or training Accredited
g Notes
Full Externa provider) or Cost in
Post / Position / NQF No of Period Additional
time or l connecte equivalent Rand
level trainee (days/ information
Occupation Part training d /non (Yes or
s weeks/ Type of skill /
time Act: connecte No)
months training
refer to d party Provide
)
par 1a- Act: refer details
b to par 1c

Yes. Advanced assembly

E.g. Supervisor 4 18 Full time 3 weeks Internal
xxxxxx line supervisor

SUMMARY OF TRAINING EXPENDITURE AS A % OF THE CURRENT FINANCIAL YEAR WAGE BILL

Expenditure on SAQA approved Expenditure on equivalent Total Salary & Wages Training Cost % of
training training wage bill

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Section 12I Tax Allowance Programme
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ALLOWANCE UTILISATION

Training
Investment Allowance
Allowance Total
Allowance approved (R)
Less: Allowance already deducted for 2012

Less: Allowance already deducted for 2013

Less: Allowance already deducted for 2014

Less: Allowance already deducted for 2015
Less: Allowance already deducted for 2016
Less: Allowance already deducted for 2017
Less: Allowance already deducted for 2018
Less: Allowance already deducted for 2019
Less: Allowance already deducted for 2020
Less: Allowance already deducted for 2021
Net allowance available

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Section 12I Tax Allowance Programme
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DECLARATION BY APPLICANT

NOTE: The information submitted in this progress report will be used to compare projections from the
application form with actual/current information. If the facts upon review differ from the information
provided in the application form, to the extent that requirements regarding 12I of the Income Tax Act are
no longer met, any allowance granted with respect to this application may be revoked/ reclaimed.

I hereby declare that the information in this progress report is a fair and true reflection of the project and
that all relevant information has been disclosed

NOTE: If an independent consultant completes the progress report, the applicant must ensure that the
information provided is correct before signing the progress report. If at a later stage it transpires that
information is not correct, the applicant will be held solely responsible for misrepresentation and the
Department of Trade and Industry reserves its right to institute legal action.

SIGNED CAPACITY

(Signature of Managing Director of the entity in terms of the attached resolution of the Board members)

DATE NAME IN PRINT

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Section 12-I Tax Allowance Programme
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AUTHORISATION OF CONSULTANT ACTING ON BEHALF OF APPLICANT:

The Board of Directors/ owner(s) of (name of business)

hereby declare that (name of consultant),

in his/her capacity as (position and name of consultant business)

was appointed as consultant for the purposes of preparing and lodging a progress report.

Signed at on this day of 20 .

SIGNATURE OF DIRECTORS/ OWNER(S): NAMES IN FULL:

SIGNATURE OF CONSULTANT: NAME OF BUSINESS:

DECLARATION BY CONSULTANT ACTING ON BEHALF OF APPLICANT

I, (name of consultant), a (position)

of (name of business) hereby declare that the information

compiled by myself in completion of this progress report on behalf of

(name of applicant), is a true and accurate reflection of the affairs of the applicant. Furthermore, I am aware of all

the contents of this progress report.

Signed at on this day of 20 .

SIGNATURE OF CONSULTANT: NAME OF BUSINESS:

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Section 12-I Tax Allowance Programme
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DECLERATION BY THE EXTERNAL AUDITOR

NAME ………………………………………………………REGISTRATION NUMBER ………………………………

POSTAL ADDRESS

I hereby declare that the information submitted with this progress report is true and fair and I have initialled each page
of his form to this effect. I declare that the financial statements used to prepare the report are the same as those
submitted to South Africa Revenue Services.

SIGNATURE……………………………. DATE……………………

V. PLEASE ATTACH THE FOLLOWING DOCUMENTS

Please check if the documents are included before submitting the progress report. x
 Valid tax clearance certificate(s).
 CM22 form: notice of registered office and addresses
 Certificate of change of registered name
 Letters of appointment of acting as an agent (where an agent completes the application on
behalf of the applicant).
 Audited annual financial statements.
 Energy Efficiency certificate issued by SANEDI

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