“It is vital for both the companies and the country to derive benefits from the R&D tax incentive programme. By undertaking R&D, companies enhance their innovative capabilities and improve their ability to develop and sell new products and improve on existing products, processes and services. They also improve their ability for absorbing technologies from elsewhere,” Kubayi-Ngubane noted. “I, therefore, urge the business sector to take advantage of the R&D tax incentive and invest more in R&D.

“Section 11D provides an extremely generous allowance. The 150% allowance for qualifying R&D expenditure effectively grants the taxpayer a R42 tax subsidy for every R100 of qualifying R&D spent, whilst the accelerated depreciation allowance enables an extremely swift asset write-off. It is therefore imperative for taxpayers with any meaningful R&D activities to investigate the possible application of section 11D in their business at the earliest opportunity. Successful use of section 11D will no doubt considerably reduce their normal tax liabilities which in turn will significantly augment their cash flows.”

“To be honest, this incentive is close to my heart. The tax benefit is something that can enable companies to encourage young scientists, engineers and innovators to stay in our country and help build. It can move South Africa back to the forefront of innovation on the world stage and it can drive that entrepreneurial spirit South Africans are so well known for.”