The Global Business Services incentive was put into effect on the 1st of January 2019. The key objective of the incentive is to create employment in South Africa through servicing offshore activities. The secondary objectives of the programme include creating employment opportunities for the youth (age 18-34 years) and contributing to the country’s export revenue from offshoring services.
South Africa’s value proposition for GBS is underpinned by quality English-speaking talent, noteworthy cost savings, a solid foundation in contact centre and niche services, evolving capabilities for next-generation services for digital contact centres and exceptional infrastructure.
The Global Business Services (GBS) Incentive comprises of two components;
A basic incentive which is a three-tier differential incentive for non-complex jobs, complex and extremely complex jobs, based on the fully loaded cost per job.
The base incentive is a five year operational expenditure (OPEX) grant that decreases in line with the narrowing cost gap between South African and other offshore destinations.
A graduated bonus incentive is offered for greater job creation and sustainability, if the applicant exceeds specific annual offshore job creation targets.
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;
• The applicant 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;
• The applicant 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.
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