More Information (this also applies to Manufacturing)

The Small Medium Enterprise Development Programme (SMEDP), announced in September 2000, has given the tourism industry a major boost in the form of a Lucrative Cash Based Tax Free incentive benefit geared towards new tourism companies as well as those wishing to expand and focuses on enterprises investing in assets for new projects or expansions of existing operations up to R100 million. The incentive is calculated as a percentage of the investment in qualifying assets, applied on a sliding scale basis from an effective 10% for the first R5 million invested to an effective 3% on investments up to the maximum R100 million limit.

The SMEDP programme aims to create wealth, generate employment, develop entrepreneurship, promote empowerment, utilize local raw materials, ensure sustainability of projects receiving incentives in the long run, encourage greater investment in training, create opportunities for introduction of new and advanced skills in South Africa and promote foreign investment.

Qualifying assets under the tourism programme include buildings, furniture and equipment and vehicles designed for transportation of tourists. These may be owned or leased. (includes land, building, machinery and equipment for manufacturing)

Qualifying tourism activities include those providing short-term accommodation such as hotels, lodges and guesthouses (restaurants and conference centres can also qualify). In addition tour operators, funicular and private railways and aerial cableways are eligible. Qualifying activities also include the operation of water transport vehicles that are used exclusively for tourists on dams, lakes, down rivers, in harbours and to islands along the coastline.

The SMEDP extends benefits to a wide range of industries, only the guidelines pertaining to the tourism and manufacturing sectors have been released to date. It is expected that the guidelines pertaining to the other SMEDP industries such as agro-processing, business services, recycling, bio-technology, IT and communications, culture and aqua-culture industries will be announced in the near future.

It has been our experience that many businesses have forgone certain incentives due to a lack of marketing information on the various incentive schemes and a shortage of time to devote on the subject. We offer you specialized knowledge in gaining access to the various incentive schemes and other benefits. St. Bartz Consulting works on a performance-based fee structure, thus placing the onus on us to obtain the most lucrative incentive package for your business.