Learnership Agreement Tax Deduction

    Note that when a learner is a person with a disability (defined in section 6B(1) of the Act), the amount of R40,000/R20,000 is increased by an amount of R20,000/R30,000. To receive the supplementary allowance for disabled learners, the worker must be disabled at the time of conclusion of the contract with the employer. Reference to the Income Tax Act, § 12H, paragraph 2 (a): Scenario: The employer is a party to a registered apprenticeship contract for the entire tax year. Supplement: NQR (1-6) R40,000; NQR (7-9) R20,000. In addition, to receive the allowance provided for in Article 12H, the apprenticeship agreement must have been concluded before a specific date. This period has been extended from October 1, 2016 to April 1, 2022. In fact, it is a tax deduction that allows an employer (or company) to recover tax for one of its employees or unemployed under a registered apprenticeship agreement concluded between the learner, the employer and the competent SETA before 1 April 2022. Reference to the Income Tax Act, § 12H (4): Scenario: The apprenticeship agreement, which corresponds to or exceeds 24 full months, has been concluded by the learner. Supplement: NQR (1-6) R40,000; NQR (7-9) R20,000 multiplied by the number of successive 12-month periods during the term of this Agreement. In addition to the EIT, an employer may also benefit from a deduction from an apprenticeship allowance during a tax year if the conditions laid down in Article 12H of the Income Tax Act are met as set out above. Apprenticeship agreements concluded on 1 The new section 12H, which is aimed at workers most affected by unemployment for lack of relevant qualifications, falls under the new section 12H. The sunset clause has been extended until 31 March 2022.

    Employee education and training plays a crucial role in a company`s growth and success, but budget issues often lead employers to think – or hope – that employees “learn in the workplace”. Fortunately, SARS introduced the Apprenticeship Tax Deduction (Section 12H of the Income Tax Act No. 58 of 1962), which encourages employers to promote skills development by introducing learnerships. Section 12H of the Income Tax Act 58 of 1962 grants employers a deductible for “registered apprenticeship agreements”. A registered apprenticeship agreement is defined as a contract registered under the Skills Development Act 1998 and concluded between a learner and an employer before a date set by law. If the contract is registered within twelve months of the end of the company`s year in accordance with the Skills Development Act, the contract is deemed to be registered on the day the apprenticeship contract is signed. . . .