150%
Percentage of qualifying expenditure eligible for R&D Tax Incentive.
2/2
Both projects were approved in an industry known for having a 62% rejection rate.
As one of Amazon Web Services’ first Advanced Consulting Partners in Africa, Synthesis Software Technologies is focused on building advanced cloud architecture for customers delivering cost-efficient, web scale and highly available services with global reach.
Synthesis was focused on advancing payments technology via two projects Halo Dot and Keystone. Halo Dot involved the development of a novel product that would allow for any NFC-capable Android phone to accept contactless payments. While Keystone involved the advancement of Personal Identification Number (PIN) security technology by enabling the secure transmission of a PIN from a client device to the back end of a bank, and vice versa. As a leader in the payments technology space, Synthesis is constantly looking to advance the current state-of-the-art. The ongoing work at Synthesis is predominantly R&Drelated projects.
01 The Challenge
Synthesis were aware that they might be entitled to R&D grants and incentives but were unsure of how to maximise this opportunity. Software projects in South Africa are often overlooked from an R&D tax incentive, and are known for being difficult to claim. Only 38% of claims are approved by the Department of Science and Innovation, while 62% are rejected. Identifying, processing and securing such opportunities, and dealing with complex regulatory issues involved, requires vast expertise and experience.
02 The Solution
Catalyst Solutions found that Synthesis’ R&D efforts were eligible for the R&D Tax Incentive. They worked closely with Synthesis to analyse all available opportunities to add to their R&D investment. The R&D Tax Incentive applications have been submitted and approved. The Catalyst team worked handin-hand with the Synthesis team to prepare the necessary technical motivations as well as guide them through the various challenges and bottlenecks associated with submitting the application, and we were ultimately successful.
150% Tax Deduction
Catalyst Solutions submitted an R&D tax incentive application for both projects ‘Halo Dot’ and ‘Keystone’. Ultimately, both projects were approved by the Minister of Science & Innovation and unlocked a 150% tax deduction for Synthesis on their R&D costs.
