The R&D Tax Incentive Programme
Learn about the incentive’s purpose, who it is for, how the 150% deduction works and how it is administered by the DSI, SARS and National Treasury.
Who We Are
The South African government offers the R&D tax incentive under section 11D of the Income Tax Act (Act No. 58 of 1962) in order to promote private-sector R&D investment in the country. R&D is required to boost innovation in the business sector by improving the capability for developing new products and processes and improving existing ones. This is crucial for improving the competitiveness and growth of the South African economy.
The incentive allows any company undertaking scientific and/or technological R&D in the country to deduct 150% of its R&D spending when determining its taxable income. The incentive is available to businesses of all sizes and in all sectors of the economy.
150%
Deduction of qualifying R&D expenditure
All sectors
Open to companies in any industry
All sizes
Applies to SMEs and large enterprises