Overview of the Global Business Services Incentive
The Global Business Services Incentive creates an enabling environment for investors in South Africa. It offers a deeper domain skills advantage, significant cost savings compared to other global locations, and a world-class operational experience for companies setting up operations locally. The incentive aims primarily to create employment in South Africa by supporting offshore services.
Additionally, it focuses on creating opportunities for youth aged 18 to 34 and contributing to the country’s export revenue through offshoring activities.
Components of the Incentive
The Global Business Services Incentive has two main components:
Base Incentive: This is a five-year operational expenditure (OPEX) grant for jobs of varying complexity. It tapers down over time as the cost gap between South Africa and other offshoring destinations narrows.
Graduated Bonus Incentive: Companies receive extra benefits if they exceed certain annual offshore job creation targets, promoting sustainability and growth.
Eligibility Requirements OF Global Business Services Incentive
To qualify for the Global Business Services Incentive, applicants must meet several criteria:
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Be a registered legal entity in South Africa under the Companies Act, Close Corporations Act, or Co-operatives Act.
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Be a taxpayer in good standing and provide a valid tax clearance certificate.
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Be B-BBEE compliant and submit a valid certificate of compliance or affidavit.
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Pay a minimum wage of R5,000 per month, or R4,000 for inclusively hired employees during the first twelve months.
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Operate a new or expanded facility performing Global Business Services activities, which may span multiple locations.
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Submit the application before engaging qualifying jobs.
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Secure a three-year fixed-term contract for offshore activities.
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Ensure the project is financially viable and operates as a going concern.
Job Creation Requirements
The DTI evaluates applications based on the type of jobs created:
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Tier 1 (non-complex jobs): Must create at least 50 new offshore jobs within three years, employing at least 80% youth.
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Tier 2 & 3 (complex and highly complex jobs): Must create at least 30 new jobs within three years, employing at least 60% youth.
Projects must commence operations within six months of incentive approval. Delays may lead to cancellation, requiring reapplication.
In joint ventures, at least one party must be a South African-registered legal entity. Pilot projects must result in investment and job creation within the six-month trial period.
Assistance and Facilitation
Contact us for professional support to access and implement the Global Business Services Incentive, ensuring your application meets all regulatory and eligibility requirements.
