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Try our R&D Tax Calculator and
find out how much you could claim

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Your potential benefit could be … R270,000*

*Please note this figure is an estimate based on simplified calculations; your actual savings may vary. Full Terms and conditions here
Pierre Aurel
Executive
Halo Dot

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.

CLIENTS WE SERVE
Pierre Aurel
Executive
Halo Dot

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.

15 Years

of Experience

R 4.4 Billion

R&D Tax Claims processed globally

100%

Compliance

More about R&D
Tax in South Africa

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 US

  • The R&D Tax Incentive in South Africa works on a pre-approval basis. Each project must be approved by the Minister as a ‘qualifying’ R&D project in order to claim the incentive. This approval is done through an initial application to the DSTI.
  • Once an approval has been received, you can include qualifying expenditure from the project as an R&D Tax deduction in your tax return to claim the benefit.

The 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:

  • Are you developing a new product or process, or improving existing products or processes?
  • Are you seeking to make an advance to science or technology?
  • Does the project involve some form of challenge, risk or possible failure?

  • Qualifying expenditure can include salaries, overheads, materials and contractor costs (must directly relate to research and development).
  • Investment in prototypes and pilot plants may also qualify for the enhanced deduction.
  • Qualifying R&D must take place within the Republic of South Africa.

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 make it our business
to keep your business making

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.

Eligible industries & R&D
activities in South Africa

Why Catalyst Solutions

Contact Us
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Flexible Fee Structures

Long-term partnerships are built on win/win relationships, so we keep our fee structures competitive, flexible and fair.

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We Always Overcater

From our intricate technical discussions to financial calculations, we don’t just do what’s required - we do more.

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Global Presence

Operating in four major markets, our global expertise in regulated incentives makes us highly competitive. We adapt to diverse regulatory environments with precision.

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Adjacent Refund Schemes

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.

The Catalyst Process

Clarity in Complexity
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Engage & Identify

We continuously engage with you to identify qualifying projects timeously.

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Prepare & Submit
Application Documents

Our technical consultants collaborate with you to craft robust motivations and applications, ensuring a smooth government approval process.

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Calculate & Maximise Claim Value

Our financial consultants extract and compile all the relevant costs associated with R&D projects, ensuring that your benefit is maximised.

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Prepare & Submit
Compliance Documents

Annual progress reporting and project updates are critical elements in the process.

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Ongoing Monitoring & Support

Our integration into your R&D process ensures that the incentive on all qualifying projects is maximised and compliant.

With Catalyst Solutions, you don’t just navigate the system, you conquer it – every corner of it.

Other Service Locations

Australia

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.

Germany

In Germany, up to 35% of qualifying expenditure can be claimed via the Research Allowance Act (“FZulG”).

United Kingdom

The UK’s new merged R&D Tax Incentive scheme offers tax relief of up to 27% on R&D expenditure.

Global

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.