South Africa

Details

  • Service: Tax
  • Type: Press release
  • Date: 2012/12/13

R&D spend in the energy and natural resources sector 

South Africa is primarily a resource-driven economy and our growth is hugely impacted when our energy and natural resources (ENR) sector does not perform well.

Increasing R&D spend in our ENR sector will help drive our economy and this has not gone unrecognised by our government. An example of mining innovation is the move towards investing R&D in remotely operated and autonomous/automated mining equipment, and in improved communications systems to reduce exposure to dangerous mining environments and to lower energy consumption.
 
An incentive in the form of a ‘super’ additional 50 percent tax deduction on eligible R&D spend can be claimed (based on a pre-approval system) and new legislation, effective 1 October 2012, has relaxed previous restrictions on claiming such incentives for ENR companies. 
 
The benefit of extracting value from current and future R&D spend is that this lowers costs, improves cash flow and returns to shareholders – and ultimately enables our country to compete on a value basis in this globally-coupled economy we live in.

 

Read the full summary.

 

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Contact

Contact

Mohammed Jada
Head: R&D Tax and Incentives KPMG in South Africa

Tel: +27 (0)82 719 5531

mohammed.jada@kpmg.co.za