The South African R&D Tax Incentive provides the following benefits for your company:

  1. It lowers the marginal cost of R&D
  2. It reduces your tax burden
  3. It improves your cash flow and returns to shareholders
  4. It boosts R&D productivity
  5. It helps you fund more R&D and be more innovative
  6. You can carry forward unused tax credits until you need them

By undertaking R&D in South Africa, companies enhance their innovative capabilities and improve their ability to develop and sell new products and improve on existing products, processes and services.

At a corporate tax rate of 28%, the incentive benefit translates into a benefit of 14c for every rand spent on R&D, thus reducing the marginal cost of R&D

What are the benefits of the R&D Tax Incentive for my business?