Section 12R · SEZ Act 16 of 2014
The incentive package, on the record.
Four levers move the arithmetic on a Special Economic Zone investment: a lower tax rate, a fast building write-off, customs relief, and a wage subsidy. Here is what each is worth — with the statute behind it.
▼ 12 percentage points — a 44% cut on the rate
Source: Income Tax Act, Section 12R · SEZ Act 16 of 2014
The four levers
What each incentive is worth
Qualifying corporate income tax vs 27% standard. Section 12R.
Accelerated building allowance — full write-off in a decade.
Duty & VAT on inputs inside the customs-controlled area.
Employment tax incentive applies on top, subject to its rules.
Worked example
On R100m of taxable income
Illustrative only — a flat comparison of the headline rate, before any company-specific factors. Use the calculator for your own figure.
| Line | Standard (27%) | SEZ qualifying (15%) |
|---|---|---|
| Taxable income | R100 000 000 | R100 000 000 |
| Corporate income tax | R27 000 000 | R15 000 000 |
| Retained after tax | R73 000 000 | R85 000 000 |
| Annual saving | — | R12 000 000 |
Illustrative flat-rate comparison · not tax advice · confirm with a qualified adviser
The statute
Full incentive table
| Incentive | Treatment | Basis |
|---|---|---|
| Corporate income tax | 15% qualifying rate vs 27% standard | Income Tax Act s12R |
| Building allowance | 10% p.a. on qualifying buildings (10-yr write-off) | Income Tax Act s12S |
| Customs relief | Duty + VAT relief on inputs in a customs-controlled area | Customs & Excise + SEZ Act |
| Employment tax incentive | Wage subsidy for qualifying employees | ETI Act |
| One-stop support | SEZ operator facilitation & permitting support | SEZ Act 16 of 2014 |
Source basis: SEZ Act 16 of 2014, Income Tax Act, SARS guidance · rates change — verify before relying
Incentive questions
What corporate income tax rate applies in an SEZ?
What is the building allowance?
What relief applies inside a customs-controlled area?
Is the employment tax incentive available?
Are these rates guaranteed?
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