According to government, the pre-approval system provides certainty for companies when planning for R&D investment.

To access the programme, a company must submit an application to the Minister of Science and Technology for approval. The administration of the incentive is done by the DST. The application form must be completed, sent and received by the DST before commencing with the R&D, as only the expenditure incurred on or after the date on which the DST received the application will be considered.

Why does the R&D Tax Incentive require pre-approval in South Africa?