Tax Rebates

Additional Deduction for Learnership Agreements

Section 12H provides additional deductions to employers for qualifying learnership agreements. These additional deductions are intended as an incentive for employers to train employees in a regulated environment in order to encourage skills development and job creation.

Training contracts qualifying for these deductions are learnership agreements and apprenticeships registered with a SETA. These additional deductions consist of an annual allowance and a completion allowance. Effective from 1 October 2016, the amount of the allowance will depend on the NQF level held by the learner before entering into the learnership agreement.

Download the following for more information on Additional Deductions for Learnership Agreements and the requirements.
LAPD-IntR-IN-2012-20 – Additional Deduction Learnership Allowance

ETI calculation and the benefits

The employment tax incentive is aimed at encouraging employers to hire young and less experienced work seekers. If an employer is eligible to receive the employment tax incentive in respect of a qualifying employee, the employer may reduce its employees’ tax payable. The incentive came into effect on 1st January 2014 and ends on 28 February 2019.

  • The ETI applies only to employers who are registered for employees’ tax with SARS.
  • Employers deduct or withhold the amount of employees’ tax that is payable on remuneration paid or payable to an employee.
  • If the eligible employer hires a qualifying employee, the employer can deduct the employment tax incentive amount from the total amount of the employees’ tax owed to SARS.
  • The ETI will operate by decreasing the amount of employees’ tax that is payable by an employer through the Pay-As-You-Earn (PAYE) system.
  • The amount of employees’ tax that is owed by the employee will still be recorded as being paid (that is there will be no shortfall when the employer reconciles at the end of the tax year). The employer merely retains the cash value of the incentive.

Download the following for more information on ETI Calculation and its benefits:
PAYE-GEN-01-G05 – Guide for Employers in respect of Employment Tax Incentive – External Guide

Current Training Schedule