SARS Benefits for Employers who train learners and/or Apprentices

Kigima AETC News

Did you know that SARS encourages employers to benefit from allowances available i.r.o learner and / or apprentice training?

You have no doubt heard that merely involving your bookkeeper / account / tax advisor / auditor, your business stands to benefit. Further you no longer doubt your efforts to skill your staff; entrench the importance of succession planning; offer a career path to your employees and play your part to make the retail motor industry any young person’s “the industry” of choice. The link will take you to the SARS document and you will learn the following:

  • Learnership / apprenticeship Tax Incentive continues until 31 March 2022
  • Two types of deductions are available, namely an annual allowance and a completion allowance
  • The quantum of these allowances is increased if the learner is a person with a disability
  • The value of the deduction is increased from R50 000 to R60 000 for qualifications from NQF level 1 to NQF level 6
  • The criteria prescribed by the Commissioner relating to disability are contained in form ITR-DD “Confirmation of Diagnosis of Disability”, which is available on the SARS website.
  • Requirements exist i.r.o Annual Allowance
  • Requirements exist i.r.o Completion Allowance
  • Prohibition of learnership allowances exists
  • Examples available for employers’ use i.r.o Date of Commencement of annual allowance
  • Explanation of ‘12 Full Months during Year Of Assessment (YOA)’
  • Explanation of ‘Less than 12 Full Months during YOA’
  • Example of a ‘2017 Year of assessment’
  • Example of a ‘2018 Year of assessment’
  • The completion allowance is granted once-off in addition to the annual allowance and is deductible in the year of assessment in which the learner successfully completes the learnership
  • What SARS deems to be confirmation of successful completion
  • Example – Learnership agreements for less than 24 full months
  • Example – Learnership agreements equal to or exceeding 24 full months
  • What happens in ‘Substitution of employers’
  • What happens on ‘Termination of the learnership agreement’
  • SARS Reporting requirements

Source: SARS Learnership / apprenticeship Tax Incentive (Version 1.00 2017)

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