2 Things you should know about learnership tax rebates
2 Things you should know about learnership tax rebates
Are you aware of the learnership tax rebates that businesses may utilize?
With reference to the amended BEE Codes, Skills Development is imperative for businesses to comply with B-BBEE (BEE) requirements.
With the revised BEE scorecard, companies can earn maximum Skills Development points if they spend the required 3% or 6% of their annual payroll on training initiatives as per their business category. These targets may be challenging for businesses to justify as they can be seen as huge training expenditure costs.
By utilizing learnership tax rebates, businesses will not only acquire full points on the Skill Development element but they are also able to do this in a cost-effective manner.
How may you ask?
TAX REBATE ON LEARNERSHIPS – NQF level 1-6
Kindly note the increase in the tax rebate on learnerships from R30 000 to R40 000 on initial enrolment and R30 000 to R40 000 on completion thereof (a total increase of R20 000 from R60 000 – R80 000).
This would apply to all learnerships registered from 1st October 2016.
TAX REBATE - YOUTH SUBSIDY
Businesses also qualify for a tax rebate of up to 50% on the remuneration of all employees below the age of 29 (youth subsidy) under certain circumstances
SERR Synergy offers learnership programmes specifically designed for businesses that wish to qualify for additional tax rebates as well as those businesses that wish to maximize their BEE scorecard points and qualify for additional bonus points.
