Web Ref No CL2922

Dube TradePort, located in Durban, South Africa, stands out as a key hub for trade, logistics, and investment, offering various advantages to businesses. Here are key benefits:

Prime Location: Situated close to King Shaka International Airport and the Port of Durban, Dube TradePort provides easy access to essential international trade routes, acting as a gateway to African and global markets.

State-of-the-Art Infrastructure: The trade port features world-class infrastructure, such as warehouses, distribution centers, and specialized cargo handling services, making it an attractive site for businesses looking to optimize their supply chains.

Excellent Connectivity: With seamless connections through road, rail, and air transport, Dube TradePort ensures smooth movement of goods both domestically and internationally.

Free Trade Zone: As a Special Economic Zone (SEZ), businesses operating within Dube TradePort can benefit from tax incentives and customs advantages, lowering operational costs.

Simplified Customs and Regulations: The port offers streamlined customs procedures, accelerating the speed and efficiency of cross-border trade, which is vital for importers and exporters.

Air Cargo Facilities: Due to its proximity to King Shaka International Airport, Dube TradePort boasts cutting-edge air cargo facilities, making it ideal for the transportation of time-sensitive goods like perishables and high-value items.

Diverse Business Opportunities: The port supports multiple sectors such as logistics, manufacturing, technology, and agriculture, offering diverse opportunities for businesses across various industries.

Skilled Workforce: The surrounding area has access to a skilled labor pool, especially in logistics and supply chain management, which can enhance the operational efficiency of businesses.

Commitment to Sustainability: Dube TradePort emphasizes green building certifications and renewable energy use, supporting businesses that prioritize sustainability and eco-friendly practices.

Economic Growth and Job Creation: As a major economic engine, Dube TradePort has significantly contributed to regional development, creating thousands of jobs and boosting the local economy.

Tax Benefits at Dube TradePort:

Dube TradePort offers a range of tax benefits that make it an attractive choice for businesses, especially those focused on manufacturing, trade, and export. These include:

Reduced Corporate Tax Rate: Businesses operating within Dube TradePort can benefit from a reduced corporate tax rate of 15%, compared to South Africa's standard 28% rate. This tax break is designed to encourage investment and business growth.

Exemption from VAT: Companies operating in the SEZ are exempt from Value-Added Tax (VAT) on goods and services produced and consumed within the zone, reducing production costs and improving cash flow.

Customs Duty Relief: Export-oriented businesses and those involved in manufacturing can benefit from customs duty relief on imports of raw materials and components, which lowers production costs.

Exemption from Transfer Duty: Businesses establishing operations within Dube TradePort are exempt from paying transfer duties on property purchases within the SEZ, reducing setup costs.

Investment Tax Allowance (ITA): Companies making capital investments for manufacturing, production, or export activities can qualify for an ITA, which provides tax deductions, reducing taxable income and taxes.

Tax Deduction for Infrastructure Investment: Businesses investing in infrastructure within the trade zone may qualify for tax deductions or allowances related to the cost of infrastructure development.

Employment Tax Incentive (ETI): Companies that hire eligible young or unskilled workers can reduce their payroll tax burden through the South African government’s ETI, encouraging job creation.

Accelerated Depreciation: Businesses can take advantage of accelerated depreciation on capital investments, allowing them to write off a larger portion of asset costs in the initial years of use, thus reducing taxable income.

Additional Tax Reliefs: Some businesses may receive further exemptions or tax reliefs, particularly those involved in research and development or qualifying activities.

Criteria for Tax Benefits:

To access these tax incentives, businesses must meet specific criteria, including:

- Being physically located within the Dube TradePort SEZ.
- Engaging in eligible activities such as manufacturing, logistics, and trade related to international trade and export.
- Focusing on export-oriented production, as certain benefits are tied to exports.
- Meeting minimum investment and job creation requirements to qualify for some incentives.
- Complying with local laws, including environmental, labor, and governance standards.

These tax incentives, combined with the strategic location, infrastructure, and other advantages, make Dube TradePort a highly attractive environment for businesses seeking growth, efficiency, and cost-effectiveness.