THE BENEFITS OF THE R&D TAX INCENTIVE FOR COMPANIES IN SOUTH AFRICA

A STRAIGHTFORWARD PROCESS FOR TAX INCENTIVE APPLICATION FORM RD2

FREE eBOOK FOR SOUTH AFRICAN R&D TAX INCENTIVE PROGRAMME

 

LEARN MORE ABOUT THE SOUTH AFRICAN RESEARCH & DEVELOPMENT TAX INCENTIVE

Download your free eBOOK here

►

AIM OF THE SOUTH AFRICAN RESEARCH AND DEVELOPMENT TAX INCENTIVE

The South African R&D Tax incentive is set to help maintain South Africa’s position as Africa's economic powerhouse and grow the competitiveness of South Africa on the global stage.
The Research and Development Tax Deduction in South Africa aims to:
  • promote increased private sector R&D investment in SA
  • enhance South Africa's role as an attractive hub for R&D and Innovation for multinatonal companies to conduct R&D
  • promote R&D and Innovation-led industrial development and job creation in South Africa

ARE YOU INVESTING IN R&D, BUT UNAWARE OF THE R&D TAX INCENTIVE?

THE R&D TAX INCENTIVE CAN BE THE START OF A VIRTUOUS CYCLE OF INNOVATION FUNDING

Here's how...

ADDITIONAL 50% DEDUCTION ON R&D OPEX

Companies undertaking Research and Development [R&D] in South Africa can qualify for an Additional 50 % 'Super' Tax Deduction on Operational R&D Expenditure in terms of Section 11[D] of the Income Tax Act

ACCELERATED DEPRECIATION

Investment in Plant and Machinery for R&D can qualify for Accelerated Depreciation on 50/30/20 basis over 3 years

YOUR BUSINESS DOES NOT NEED THE ADMINISTRATIVE BURDEN FOR THE TAX INCENTIVE

A SOLUTION FOR YOUR BUSINESS

  • Maximise your R&D Tax Incentive deductions

  • A straightforward process to qualify for the r&d tax incentive

  • Avoid adding complexity and costs to your business

  • Technical advice and support when required

  • Be compliance-ready with the relevant information to verify your R&D expenditure

YOUR BUSINESS NEEDS TO INNOVATE IN ORDER TO MAINTAIN A COMPETITIVE EDGE

THE R&D TAX INCENTIVE CAN HELP FUND YOUR INNOVATION PROGRAMME

GET APPROVED FOR THE R&D TAX INCENTIVE AND SAVE ON CORPORATE TAX

  • Assess whether your R&D projects and expenses can qualify for the Tax Allowance

  • Preparation of Application for Pre-Approval

  • Support with technical issues and queries from DST

  • Support with progress Reporting and Record-Keeping requirements

  • R&D Workshops for your employees

THE R&D TAX INCENTIVE IS NOT JUST FOR START-UPS AND HI-TECH FIRMS

EVERY BUSINESS EMPLOYING R&D PROFESSIONALS SHOULD LOOK INTO THE R&D TAX INCENTIVE

ENGINEERS
LIFE SCIENCE PROFESSIONALS
COMPUTER SCIENTISTS
SCIENTISTS

For purposes of the South African R&D Tax Allowance, your company R&D activities must meet certain eligibility criteria as defined by the legislation.

R&D is defined as ‘systematic investigative or systematic experimental activities of which the result is uncertain for the purpose of:

  • discovering new scientific or technological knowledge
  • creating or developing an invention, a functional design, an innovative computer program, or knowledge essential to the use of the aforementioned
  • significantly improve an existing invention, design, computer program or knowledge. This may be done to achieve something new, or improve functionality, an improvement in performance, reliability or quality when compared to existing
  • developing a generic medicine
  • running a Clinical Trial in South Africa

 

HOW TO DETERMINE IF YOUR R&D ACTIVITIES ARE ELIGIBLE FOR THE R&D TAX INCENTIVE?

Your company R&D activities will need to satisfy certain conditions defined by the tax guidelines.

An eligible R&D activity can be distinguished from a non-R&D activity if these criteria can be met, viz., the activity must be:

  • NOVEL i.e. the project is aimed at identifying a new solution or knowledge
  • CREATIVE i.e. the work is based on original, non-obvious concepts and hypotheses
  • UNCERTAIN i.e. you are uncertain about the final outcome
  • SYSTEMATIC i.e. the R&D activities are planned and budgeted for