To claim the R&D Tax Incentive, the taxpayer is required to complete and submit two forms, one to the DST and the other to South African Revenue Service (SARS), as follows:

  1. Complete and submit the R&D Tax Incentives Form to the DST. The form must be submitted to the DST within six months of the taxpayer’s financial year end.
  2. Complete the relevant entries in the Income Tax Return Forms as prescribed by South African Revenue Services (SARS). This is submitted in a normal process of income tax returns. The R&D tax incentive is administered by DST, in conjunction with SARS and the National Treasury, as follows:
    • DST is responsible for promoting the R&D Tax Incentives programme and provides general advice to both government and private companies on strategic and operational issues of the programme. It is required to assess and validate the claims against scientific and technological R&D and advise SARS on the eligibility of activities included in the claim. In this regard DST may visit taxpayers to assess the validity of their claims. DST also has a responsibility to report annually to Parliament regarding the performance and impact of the R&D tax incentive programme.
    • SARS is the government agency that administers the Income Tax Act. SARS administers the R&D Tax Incentives through the taxation system. Taxpayers claiming the R&D Tax Incentives do so by completing the relevant entries on their income tax return.
    • A further responsibility on the functioning of the R&D Tax Incentives involves the National Treasury, with respect to the tax policy.
    • There are strict confidentiality requirements applicable to handling all matters in connection with information provided by taxpayers for purposes of R&D Tax Incentives. All officials involved in the administration of the programme are required to take an oath of secrecy

What is the Process for Claiming R&D Incentives in South Africa?