BDO Corporate Tax News

South Africa - Tax incentives in 2024 budget

South Africa’s 2024 budget presented on 21 February 2024 includes modifications to various tax incentives, underscoring the government’s commitment to fostering innovation, skills development, renewable energy utilisation and responsible investment practices within the tax framework.

The following changes were announced:
  • Research and development (R&D) tax incentive: This incentive, which allows a 150% deduction on qualifying R&D expenditure, is extended through 31 December 2033. This extension ensures the continued relevance of the incentive, particularly in the manufacturing, financial intermediation, insurance, real estate and business services sectors.
  • Learnership tax incentive: This incentive, which offers employers additional deductions for providing further skills development through qualifying learnership agreements, is extended through 31 March 2027.
  • EV tax incentive: A new incentive that will benefit domestic manufacturers of electric and hydrogen vehicles will be introduced with effect from 1 March 2026. Qualifying manufacturers will be able to claim a 150% deduction on any new investments in production capacity for electric and hydrogen vehicles in the first tax year of the investment.

Barry Visser
BDO in South Africa
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