Agriculture sector

Businesses in the Agricultural Sector can qualify for tax deductions through the R&D Tax Incentive in SA

Many Agricultural businesses are not aware of the South African Research and Development [R&D] Tax Incentive Scheme. Some farmers they may think that this Incentive may not apply to the Agricultural sector. The fact is the R&D Tax Incentive applies to all companies in all sectors. You do not need a PhD and a laboratory to be conduct R&D as defined by Section 11D of the Income Tax Act. It’s worth finding out more about this Tax Incentive.
 
Has your business produced new or improved Agriculture related products recently? Have you modified growing processes to increase yields? Have you reduced the reliance on chemicals? Have you made other improvements to the efficiency of your agricultural operation? If the answer is yes, then there is a strong chance that your business could benefit from an R&D Tax Incentive review.

 

“In levying taxes and in shearing sheep it is well to stop when you get down to the skin.”

Austin O’Malley

 

Examples of Agricultural activities eligible for R&D Tax Incentives include the following:

  • Hybridization or development of new strains of crops, plants, or livestock
  • Implementation of precision farming techniques in attempt to increase yield and/or production efficiency
  • Experimentation with new or different fertilizers (organic etc.)
  • Development/implementation of new ways to protect crops from disease
  • Development and implementation of new irrigation systems
  • Evaluation and implementation of new techniques to increase yields
  • Attempts to develop or implement new cultivation techniques

These are just a few examples of Research and Revelopment activities in the Agriculture industry.

 

“What is the difference between a taxidermist and a tax collector? The taxidermist takes only your skin.”

Mark Twain

 

The R&D Tax Incentive means paying less corporate tax to SARS.

 

If your company operates in Agriculture, there is good reason for you to find out whether your projects and activities qualify for the R&D Tax Incentive. For a free assessment, speak with Vantage Advisors to help you understand whether you can qualify for the R&D Tax Incentive.

 

email: vantage@taxincentive.co.za