DST to issue final decision on R&D tax break applications by Dec
The Department of Science and Technology (DST) has confirmed that it will, by December 15, indicate which of the 384 companies that have applied for tax deductions for research and development (R&D) activities under Section 11D of the Income Tax Act, have been successful.
The tax scheme, which was introduced by the department to encourage and incentivise private sector investment in R&D, allows companies to get a 100% deduction for R&D activities, as part of their deduction for business expenditure.
In October 2012, new administrative arrangements were introduced, which allowed firms access to an additional 50% deduction if an R&D project was pre-approved by the Science and Technology Minister.
The DST said in a statement on Friday that it had received an “unexpectedly large” number of applications since October, which had delayed the approval process, but added that the first batch of applications had now been approved.
The relevant companies would receive formal communication in this regard before the end of July.
“We hope this commitment provides clarity to companies that have applied or wish to apply for the additional 50% deduction. The overwhelming number of requests for pre-approval is encouraging and shows that the private sector is more than willing to invest in R&D and introduce innovations in the country,” it said.
The department expected to have cleared the current backlog in approvals by March next year.
By that time, the DST expected to also be able to process and finalise new applications within 90 days.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Astore Keymak is one of South Africa’s leading suppliers of high-quality Thermoplastic Pipeline Systems, with branches in the major provinces.
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
