Ease of Doing Business
The EODB model is an investor–responsive and proactive approach that focuses on six pillars.
The Freeport Model and Incentives
The SBIDZ is located within the port of Saldanha Bay, giving investors direct access from the quayside to the back of port precincts of the zone where manufacturing, repairs and logistics activities take place. The access to the port terminals facilitates direct imports and export of bulk goods, as well as other marine services.
The SBIDZ Freeport was developed by making use of the designation advantage, enabling legislation and special economic zone (SEZ) incentives. The fiscal incentives that enable the offering to investors include incentives specifically designed for the SEZs and include:
- Reduced Corporate Tax rate from 28% to 15% under Section 12R of the Income Tax Act;
- Youth Employment Tax Incentive under the Employment Tax Incentive (ETI) Act;
- Building Allowance Incentive under Section 12S of the Income Tax Act.
The key enabler of the Freeport with regards to the movement of goods is the Customs Controlled Area (CCA) regime of S21A of the Customs and Excise Act.
- Only enterprises located within a CCA of an SEZ are eligible for the relief from import customs and excise;
- Duties on goods imported into the CCA. The relief amounts to a full rebate of import customs and excise duties on all goods imported into a CCA by a CCA Enterprise (CCAE).
Once a company has the CCAE registration approved, it must also be registered as an importer for customs purposes, under the applicable rebate item. Once registration is obtained, the CCAE will be able to access the customs and VAT incentives.
A simplified and easy–to–understand booklet, SARS SOP: SEZ CCA AND FISCAL INCENTIVES explains the eligibility criteria for these incentives, as well as the process of application.
To further enhance the globally competitive and enabling Freeport offering, the SBIDZ:
- Facilitates the movement of people through visas, work permits and immigration facilitation;
- Provides a one-stop-shop service in the Ease of Doing Business (EODB) Centre;
- Ensures the highest level of security from a CCA regime requirement and the international ship and port security compliance point of view.
A simplified and easy-to-understand booklet, DHA OPERATIONAL PROCEDURES, outlines the different kinds of visas available to persons wishing to do business in South Africa, the eligibility criteria, and the process of application.
Additional documentation to inform and enable an understanding of operating a business within the Freeport includes: