Business
Approval of 12I Tax Allowance
Approval of 12I Tax Allowance.
About this update from Ironveld Plc
[{"type":"text","content":"\n \nRNS Number : 9646R Ironveld PLC 18 September 2014 \n \n\n18 September 2014\n \nIronveld plc (\"Ironveld\" or the \"Company\")\n \nApproval of 12I Tax Allowance Incentive application\n \nIronveld plc, the Pig Iron Developer located on the Northern Limb of the Bushveld Complex in Limpopo Province South Africa, is pleased to announce that its 12I Tax Allowance Incentive application for its 15MW smelter has been approved by the Republic of South Africa's Department of Trade and Industry (\"the DTI\").\nThe 15MW smelter has been classified by the DTI as a Greenfield Project with Qualifying Status from September 2014 until 30 September 2018 and the incentive value of the 12I tax allowance scheme is now estimated to be R 54.6 million (approximately GBP 3.1 million).\n \nThe approval is subject to conditions stipulated in section 12I of the Income Tax Act, No 58 of 1962 (the Act) and the Regulations made under section 12I of the Act.\nSection 12I is an additional income tax allowance, claimed in the tax year when the asset is brought into use. It is not a grant that is paid by the DTI to Ironveld but an additional tax allowance that is claimed over and above normal tax allowances associated with the asset. The incentive value is the after tax value of the additional allowance.\nThe Company was assisted with the preparation and submission of the 12I application by Deloitte & Touche.\nPeter Cox, CEO of Ironveld plc, commented: \"The DTI's acknowledgment and the approval of the 12I application is an important milestone, highlighting the Government's support and confidence in the Company as we work towards progressing our pig iron project and first production at the 15MW smelter in late 2015. We are currently awaiting EIA approval of the smelter which was submitted following the acceptance of the scoping study and is expected in October.\"\nEnds\nFor further information, please contact:\n\n\n\n\nIronveld plc\nPeter Cox, Chief Executive\n\n\nc/o Camarco\n020 3757 4980\n\n\n\n\nShore Capital and Corporate Limited\nStephane Auton / Toby Gibbs (corporate finance)\nJerry Keen (corporate broking)\n\n\n020 7408 4090\n\n\n\n\nCamarco\nBilly Clegg/ Georgia Mann\n\n\n020 3757 4980\n\n\n\n\n \n\n\n \n\n\n\n\nNotes to Editors:\nIronveld (IRON.LN) is an AIM listed exploration & development mining gr...