S11D (R&D tax incentive) Guideline

Mike Du Toit, current president of the South African Institute of Intellectual Property Law, has kindly drawn AFRO-IP’s attention to a 34 page comprehensive guide to the S11D tax incentive, published by Sibanda and Zantwijk on their website here. The guideline is a very worthwhile read for those interested in taking advantage of the potentially significant incentive.

According to S11D(1): For the purpose of determining the taxable income derived by a taxpayer from carrying on any trade, there shall be allowed as a deduction from the income of such taxpayer so derived, an amount equal to 150 per cent of so much of any expenditure actually incurred by that taxpayer directly in respect of activities undertaken in the Republic directly for the purposes of qualifying R&D activities.

The document contains a condition of fair use stating that “all references to the firm should be retained if the document is used, distributed or copied” just after the statement that the document “is released in furtherance to the firm’s commitment to make intellectual property more accessible” (a notion that strikes a chord with AFRO-IP).

The legislation can be downloaded through the National Treasury website.