One of the most generous tax incentives for companies in South Africa is the R&D Tax Incentive. All R&D Operational Expenditure in South Africa is 150% deductible. This is subject to pre-approval by the Minister of Science and Technology. In addition, the cost of machinery and other capital assets acquired for the purposes of R&D may be depreciated 50% in the first year of use, 30% in the second, and 20% in the third year. Buildings used specifically for R&D may be written-off over a 20-year period.