• Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 8/5/2013

South Africa - Proposed changes to R&D tax incentive regime 

August 5: Proposals in South Africa concerning research and development (R&D) tax incentives would appear to limit qualifying criteria while, at the same time, providing a “special dispensation” for selective industry sectors.

The National Treasury released the proposals in Draft Taxation Laws Amendment Bill, 2013 on Thursday evening, 4 July 2013.

Among the proposed changes are measures that would refine the expenditure exclusions, and repeal a long-standing rule allowing companies to qualify for the incentive if they undertake activities aimed at obtaining “knowledge essential to the use of such invention, design or computer program” so as to deny the incentive if a taxpayer fails to make a “significant and innovative” improvement.

Read a July 2013 report prepared by the KPMG member firm in South Africa: R&D sound bites on the Draft Taxation Laws Amendment Bill

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