South Africa

Innovation Grants and Tax Incentives

The Catalyst your business needs to take advantage of tax savings and grant opportunities. There are numerous options, including supercharged tax deductions, cash grants and loans.

Operations and Resource Efficiency

With rising costs, shortages in energy and water supply and pending environmental taxation, it becomes important for your company to effectively manage energy, carbon, water and waste. We work with our clients to measure and manage their impact on the environment and to comply with changes to environmental legislation.

Strategy and Growth

We will work with you on a strategy to take advantage of the available grants and tax incentives opportunities relevant to your strategic growth projects and assist you throughout the application and claiming process.

Reporting and Verification

As a SANAS-accredited inspection body for measurement and verification, we assist clients to quantify energy, carbon, water and waste reduction. We also manage your existing and pending sustainability reporting obligations to government, investors and other stakeholders.

Innovation Support

Government acknowledges that innovation is a critical aspect of any business and have provided several incentives to help you take maximize the return on investment in R&D. These incentives are not necessarily mutually exclusive. We will work with you to identify which incentive is the most appropriate for your unique situation.

Some of the Incentives available include:

The 11D tax deduction:

The incentive allows for a supercharged tax deduction of 150% on qualifying R&D expenditure, which results in a cash(tax saving) benefit of 14% on qualifying expenditure. R&D is not limited to work being done in a laboratory. Examples of qualifying activities include product or process development and improvements, scientific or technological designs, patentable work, activities involving testing and trial work, or software development. In order to qualify for the incentive, the R&D must be done in South Africa and qualifying expenditure can include salaries, overheads, materials and contractor costs. Current legislation requires companies to pre-approve the R&D that is being done in order to claim the incentive. Only expenses incurred after the date of submitting the application can be included. This tax saving is also great in that it is not capped. It can therefore lead to substantial tax savings.

The Support Program for Industrial Innovation (SPII):

The Department of Trade and Industry (DTI) are offering a cash grant for innovative development projects under the incentive called Support Programme for Industrial Innovation (SPII). The SPII grant is a matching scheme, where the DTI will match 50% of the project costs of up to a value of R5 million.  This cash is non-taxable and is provided upfront in 3 milestones during the project duration. An example would be a product with some sort of competitive advantage on other South African companies. Also note that the IP should remain in South Africa for at least 3 years.

Technology Innovation Agency (TIA):

The Technology Innovation Agency provides unsecured loans of up to R15 million. The loan is only paid back out of revenue should the development be successful. TIA is focused on projects that are advancing technology. The loan will be paid out in milestones.

Strategy and Growth

The South African Government provides various incentive programmes in the form of cash grants and tax incentives to promote capital investment and expansions, job creation and skills development, increased competitiveness, energy, sustainability and other priority sectors identified by Government in an effort to positively contribute to the country’s economy. We will work with you on a strategy to take advantage of the opportunities on offer for your growth projects and assist you throughout the application and claiming process.

  • Strategic investment decision making support
  • Capital investment grants and tax incentives
  • Job creation grants and tax incentives
  • Supplier development initiatives
  • Infrastructure investment and alternative energy support
  • Black Industrialist support
  • Development finance raising
  • Tax incentive advisory

Operations and Resource Efficiency

 Companies are faced with rising energy and water prices, shortages of supply and increases in natural resource taxation and regulation. It is within this environment that Catalyst provides companies with solutions aimed at reducing cost, securing supply and ensuring regulatory compliance. More specifically, we act as trusted advisors to companies on environmental policy, ensuring that they remain compliant with all existing regulation and are prepared for new regulation. We also help companies to quantify and reduce their environmental impact. We focus specifically on energy, carbon, water and waste.

  • Policy Advisory and Regulatory Compliance
  • Sustainability Strategy including target setting and Science-Based Targets
  • Footprinting and Resource Efficiency Assessments
  • Management Plans and Systems

Measurement & Verification Services

Measurement and verification is an essential part of the project cycle. It is required to quantify the savings realised from any energy or water efficiency and/or GHG emission reduction project. Catalyst Solutions has a team of highly specialised Certified Measurement and Verification Professionals (CMVPs) and Certified Energy Managers (“CEM”) who assist companies in measuring and verifying savings from planned or implemented projects.

Accreditation

Catalyst Energy Solutions, a division of Catalyst Incentive Solutions, one of a few accredited by the South African National Accreditation System (SANAS) to perform measurement and verification of energy savings. This accreditation is required when preparing and signing off applications for the energy efficiency tax incentive, section 12L.

Catalyst Energy Solutions performs all measurement and verification in accordance with the South African National Standard (SANS) 50 010 for the measurement and verification of energy savings and the International Performance Measurement and Verification Protocol (IPMVP). All measurement and verification is also performed in line with our Quality Management System which ensures we act independently and impartially and the services delivered are of a high quality.

We also assist companies in preparing measurement and verification plans and conducting measurement and verification of carbon, water and waste, in addition to energy.

Carbon Reporting

Not only do we provide companies with measurement and verification services, but Catalyst Solutions also assists companies with environmental reporting. We understand that companies are faced with ever increasing reporting requirements. We are also familiar with the challenges around reporting and the need to be accurate and transparent.

Our team assists companies to respond to the Climate Change, Water and Supply Chain Carbon Disclosure Project (CDP). We also help companies to report in line with the Global Reporting Initiative (GRI) and to meet their environmental reporting requirements under the King Code. Catalyst Solutions engages with policy makers to understand forthcoming reporting requirements and we work with companies to prepare them for these requirements. If you operate in an energy-intensive industry, it may be that you will soon be required to report on your GHG emissions and energy consumption.

In addition, you may need to have plans in place to reduce both your GHG emissions and energy consumption. Catalyst Solutions can assist in preparing you to report in accordance with the requirements and we can also assist with the actual reporting.

Catalyst Incentive Solutions (Pty) Ltd is a SANAS Accredited Inspection Body, No EEMV0012 in accordance with the recognised International and National Standards ISO/IEC 17020:12 and SANS 50010:2011.

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