Extended by 3 years
Important to note
South African Minister of Finance, Enoch Godongwana, in his budget speech on 21 February 2024, announced another extension to the Section 12H Learnership Tax Incentive.
This means that businesses remain eligible to receive the relevant tax benefits for learnership agreements initiated on or prior to 31 March 2027. Businesses thus have an extended period to invest in skills development and maximise their tax benefits.
What is Section 12H?
Through Section 12H of the Income Tax Act, businesses investing in registered learnership programs are eligible to claim a tax deduction for qualifying expenses. To qualify for the Section 12H incentive, businesses must enrol beneficiaries on a registered learnership program and meet the specific criteria as outlined in the Income Tax Act.
The below tables outline the applicable allowances:
Category
Able-Bodied Learner
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Criteria
Registration Allowance: Proof of learner registration (learnership contract), pro-rata over 12 months
Completion Allowance: Proof of successful exit from learnership (SETA Statement of Results)
TOTAL (per learner)
Amount / Learner
R40 000.00
R40 000.00
R80 000.00
Category
Persons with Disabilities
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Criteria
Registration Allowance: Proof of learner registration (learnership contract), pro-rata over 12 months
Completion Allowance: Proof of successful exit from learnership (SETA Statement of Results)
TOTAL (per learner)
Amount / Learner
R60 000.00
R60 000.00
R120 000.00
Ready to unlock the benefits of the Section 12H Tax Incentive?
Contact THE TRUST BASED LEADERSHIP ACADEMY today and let us assist you to maximise this benefit to offset the cost of your Leadership Learnership programmes.