The Global Business Services incentive launched on 1 January 2019. It aims to drive employment growth in South Africa. In particular, it supports businesses that service offshore markets. As a result, the programme strengthens the country’s position in the global outsourcing sector.
Furthermore, the incentive prioritises youth employment. It focuses on individuals between the ages of 18 and 34. In addition, it contributes to increased export revenue through offshoring services. Therefore, the programme supports both economic growth and workforce development.
The Global Business Services (GBS) Incentive comprises of two components;
The Global Business Services incentive applies a three-tier structure. It differentiates between non-complex, complex, and highly complex jobs. In addition, it bases support on the fully loaded cost per job. Therefore, businesses receive funding aligned with the complexity and value of roles created.
OPEX Grant for Global Business Services
The programme provides a base incentive in the form of a five-year operational expenditure grant. This grant reduces over time. As a result, it reflects the narrowing cost gap between South Africa and other offshore destinations. Furthermore, this structure encourages long-term sustainability and competitiveness.
Performance-Based Bonus Incentive
The programme also offers a graduated bonus incentive. Businesses qualify for this incentive when they exceed annual offshore job creation targets. In addition, the bonus rewards sustained employment growth. Therefore, companies that scale operations and maintain jobs receive additional financial support.
Criteria to be deemed eligible for the Global Business Services Incentive includes:
•The applicant must be a registered legal entity in South Africa in terms of the Companies Act, the Close Corporations Act, or the Co-operatives Act;
•They must be a taxpayer in good standing, and provide a valid tax clearance certificate;
•The applicant must be B-BBEE compliant and submit a valid B-BBEE certificate of compliance or an affidavit;
•Pay a minimum wage of R 5, 000. 00 per month, or in the case of inclusively hired resources, pay a minimum wage of R4, 000. 00 per month for the initial twelve months of employment;
•The applicant must be involved in starting a new operation or in expanding an existing operation, in order to perform Global Business Services activities, which may be operated from multiple physical locations in the country;
•They must submit an application for the incentive before the engagement of qualifying jobs;
•The applicant must have secured a three-year fixed-term contract, at least for offshore activities; and
•The project must be monetarily feasible and a going concern.
For more information & assistance – Contact DTC
