South Africa: Revised automotive investment scheme guidelines, cash grants for qualifying investments

Effective from 1 July 2021

Revised “automotive investment scheme” (AIS) guidelines, effective from 1 July 2021

The Department of Trade, Industry and Competition revised the “automotive investment scheme” (AIS) guidelines, effective from 1 July 2021.

The AIS is a non-taxable, reimbursable cash grant in respect of qualifying investment in productive assets used in South African operations by:

  • Certain original equipment manufacturers—a 20% grant
  • Certain automotive component manufacturers—a 25% grant
  • Automotive tooling manufacturers—a 25% grant
  • New energy vehicle manufacturers—a 30% grant
  • Energy efficient vehicle manufacturers—a 30% grant

The changes in the guidelines include revisions to the qualifying investment thresholds, employment levels, and the application period.

The revised AIS guidelines also removed an additional 5% or 10% grant in respect of strategic projects or projects that fulfil certain economic criteria (now, there is only the base cash grant available to applicants).

Read a July 2021 report [PDF 273 KB] prepared by the KPMG member firm in South Africa


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