South Africa: R&D Tax Incentives

The South African government aims to encourage investment in innovation by providing an incentive for increased research and development (R&D) spending in the energy and natural resources sector.

R&D incentives offered in South Africa include:

1. A "super" additional 50% tax deduction on eligible research and development expenses (based on a pre-approval system)
2. Eased restrictions on claiming such incentives for energy- related companies, provided for by new legislation, effective 1 October 2012

See this article from How We Made it in Africa for a local take on this development and contact Dafydd Williams at dwilliams@hsp.com for an assessment of applicability.