R&D Tax Incentive Under the Spotlight

Department of Science and Technology

The application process for the research and development tax incentive has been speeded up.

In a statement, the science and technology department added that the turnaround time has now been reduced to 90 days.

A task team was set up in 2015 to reduce bottlenecks that hindered private sector access to the incentive.

The measures adopted included simplifying documentation and application processes and improving information to firms on how the incentive works.

An online system was set up by which applicants can now register, complete an application and receive feedback.

National treasury informed delegates that it was not feasible to increase the tax deduction rate to 150% and introduce a refundable tax credit to support SMEs. This would increase cost to the fiscus.

The science and technology minister, Mmamoloko Kubayi-Ngubane, called on the business community to take advantage of the incentive and invest more in research and development.

Sabinet Cape Town Office