PEOPLE-CARRIER AUTOMOTIVE INCENTIVE SCHEME (P-AIS), A SUB-COMPONENT OF THE AUTOMOTIVE INCENTIVE SCHEME (AIS)
21 Oct 2019
- The DTI has initiated the People-carrier Automotive Incentive Scheme (P-AIS), a sub-component of the Automotive Incentive Scheme (AIS)
- The incentive is designed to stimulate a growth path for the people carrier vehicles industry through investment in new and/or replacement models and components that will result in new or retention of employment and/or strengthen the automotive vehicles value chain.
- The P-AIS provides for a non-taxable cash grant of between twenty percent (20%) and thirty five percent (35%) of the value of qualifying investment in productive assets approved by the dti.
Projects will be evaluated on the following economic benefit requirements:
Achieve at least two of the economic benefit criteria
- Research and Development (R&D) in South Africa;
- Employment creation/retention;
- Strengthening the automotive supply value chain
The approved P-AIS grant is to be disbursed over a period of three (3) years.
The P-AIS programme provides investment support to people carrier manufacturers / assemblers and automotive component manufacturers.
In all cases, grant payment is subject to an evaluation by the dti to determine whether the project achieved the stipulated performance requirements.
The effective date of this version of the guidelines is 1 April 2014 and will apply to applications received and evaluated from that date onwards.
- The applicant must be a registered legal entity in South Africa in terms of the Companies Act, 1973 (as amended); or the Close Corporations Act, 1984 (as amended), and must undertake manufacturing in South Africa.
- The applicant must be a taxpayer in good standing and must, in this regard, provide a valid tax clearance certificate before the P-AIS grant is disbursed.
- The applicant must submit a business plan with a detailed marketing and sales plan, a production plan, budget and projected financial income statement, cash flow statement and balance sheet, for a period of at least three (3) years for the project.
- The applicant must, in addition to the information supplied in the previous point, submit a projected financial income statement, and balance sheet for a period of at least three (3) years of the relevant division, cost centre or branch where the project is located, if applicable.
- The applicant must submit a cost benefit analysis for the project in cases where it cannot provide information in respect of a cost centre.
- Completed applications should reach the offices of the dti no later than:
- One hundred and twenty (120) days but not earlier than one hundred and eighty (180) days prior to commencement of production for people carrier manufacturers; and
- Ninety (90) days but not earlier than one hundred and twenty (120) days prior to commencement of production for component manufacturers, deemed component manufacturers and /or tooling companies.
- In the case of component manufacturers and tooling companies; an original letter of intent and/or purchase order on the letterhead of the awarding OEM/ customer, or certified copy thereof should be submitted with the application