We recently posted on LinkedIn that one of partners had enjoyed some recent successes accessing government Research & Development (R&D) funds on behalf of clients. This generated a couple of enquiries around what incentives are available for South Africans building businesses that generate Intellectual Property (IP) rich businesses and need funding to get their products to market.
Below is one of the examples that our network have successfully applied for:
R&D Tax Incentive (a supercharged tax deduction of 150% on qualifying pre-approved projects)
The incentive allows for a supercharged tax deduction of 150% on qualifying R&D expenditure, which results in a cash(tax saving) benefit of 14% on qualifying expenditure. R&D is not limited to work being done in a laboratory. Examples of qualifying activities include product or process development and improvements, scientific or technological designs, patentable work, activities involving testing and trial work, or software development. In order to qualify for the incentive, the R&D must be done in South Africa and qualifying expenditure can include salaries, overheads, materials and contractor costs. Current legislation requires companies to pre-approve the R&D that is being done in order to claim the incentive. Only expenses incurred after the date of submitting the application can be included. This tax saving is also great in that it is not capped. It can therefore lead to substantial tax savings.
If you would like more information on accessing these kinds of grants and incentives, please complete the form below and one of our problem-solvers will be in contact with you. Alternatively mail firstname.lastname@example.org for more information: