How does the Tax Incentives Work?

The Learnership Tax Incentive provides an additional tax deduction to employers for creating jobs and developing skills in terms of section 12H of the Income Tax Act. It comprises both an annual allowance and a completion allowance.

The allowance will depend on the NQF (National Qualifications Framework) level of the learnership. For NQF Levels 1-6, the employer can claim a tax allowance of R40,000 (R60,000 for disability) per year and NQF Levels 7-10 a tax allowance of R20,000 (R50,000 for disability) per year. The same amounts can be claimed as an “completion allowance” once the Learnership has been completed.

If the Learnership exceeds 24 months, then the completion allowance is multiplied by the number of consecutive 12 month periods within the duration of that learnership

Tax Incentive Calculator

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