Catalyst are more than finance and tax experts; they are technical experts that quickly understand products. They are able to understand emerging technologies and are able to describe complexity in a way that clearly communicates our innovation.
SOUTH AFRICA
A 150% supercharged tax deduction on qualifying expenditure is available via the R&D Tax Incentive which is contained in the Income Tax Act.
Catalyst are more than finance and tax experts; they are technical experts that quickly understand products. They are able to understand emerging technologies and are able to describe complexity in a way that clearly communicates our innovation.
Catalyst are more than finance and tax experts; they are technical experts that quickly understand products. They are able to understand emerging technologies and are able to describe complexity in a way that clearly communicates our innovation.
of Experience
R&D Tax Claims processed globally
Compliance
What benefit does the incentive offer?
The R&D Tax Incentive, contained in s11D of the Income Tax Act is jointly administered by the Department of Science, Technology and Innovation and the South African Revenue Service. This incentive enables successful applicants to claim a tax super-deduction amounting to 150% of the expenditure incurred directly and solely for R&D activities in South Africa. This translates to an after-tax saving of 13.5% of qualifying expenditure, effectively reducing your tax liability by R135,000 for every R1m spent.
CONTACT USThe legislation (together with guidelines) sets out the type of R&D that can qualify as being “systematic investigative or systematic experimental activities aimed at resolving scientific or technological uncertainty and the resolution of which is not readily deducible by a person skilled in the relevant scientific or technological field”
Essentially, the DSTI is looking for the following:
Recent amendments now allow for R&D related to Management or Internal Business Processes to qualify for the incentive. So even if you are working on a project that will only benefit the internal workings of your company, you can still claim (as long as it is qualifying R&D).
In a major amendment to the incentive, the legislation now allows for approvals to be backdated up to six months prior to the date of submission.
Multiple project applications are permitted per company and the incentive is uncapped.
Aside from the initial application to the DSTI, there are annual progress reports that need to be submitted on all qualifying projects.
Subcontracted R&D is tricky in all jurisdictions. The fact that you are receiving some form of payment for the R&D you are conducting does not preclude you from claiming the incentive. At Catalyst Solutions we will assess the funding scenario and advise on the best way to claim.
We’re proud to work within the world’s most unique R&D-driven innovations spanning across multiple industries. We have uncovered opportunities for Fortune 500 pharmaceutical companies and up-and-coming AI startups.
Long-term partnerships are built on win/win relationships, so we keep our fee structures competitive, flexible and fair.
From our intricate technical discussions to financial calculations, we don’t just do what’s required - we do more.
Operating in four major markets, our global expertise in regulated incentives makes us highly competitive. We adapt to diverse regulatory environments with precision.
As part of the VAT IT Group, we can advise regarding other indirect tax reclaim opportunities and unlock even more savings for your bottom line.
We continuously engage with you to identify qualifying projects timeously.
Our technical consultants collaborate with you to craft robust motivations and applications, ensuring a smooth government approval process.
Our financial consultants extract and compile all the relevant costs associated with R&D projects, ensuring that your benefit is maximised.
Annual progress reporting and project updates are critical elements in the process.
Our integration into your R&D process ensures that the incentive on all qualifying projects is maximised and compliant.
Up to 48.5% of qualifying expenditure can be claimed as a tax offset via the R&D Tax Incentive which is governed by the Income Tax Assessment Act.
In Germany, up to 35% of qualifying expenditure can be claimed via the Research Allowance Act (“FZulG”).
The UK’s new merged R&D Tax Incentive scheme offers tax relief of up to 27% on R&D expenditure.
We assist companies across the globe with R&D Tax Incentive related claims and obtain R&D Tax Incentives for some of the world’s largest listed companies.
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