SARS Tax Concession

LAPD-IntR-IN-2012-20 – Additional Deduction Learnership Allowance

SARS makes provision for companies registered for learnerships to get tax rebates of up to R60 000 per individual that stays for their full internship, irrespective of whether such a learner actually goes on to work full-time or otherwise. Such tax returns are sufficient in themselves to cover the costs of hosting a learner from salaries.

Refer to the extract from Section 12H into the Income Tax Act no. 58 of 1962 below…

The tax breaks offered to employers are the following:

In respect of learner who is not employed with the employer at the time of entering into the learnership

  • Upon entering into a registered learnership agreement (before 1 October 2011), a deduction from income equal to the lesser of R30 000 or the annual equivalent of the remuneration of the learner; and
  • Upon completion of the registered learnership agreement (before 1 October 2011) a deduction from income equals to the lesser of R30 000 or the annual equivalent of the remuneration of the learner.

In respect of learner who is employed with the employer at the time of entering into the learnership

  • Upon entering into a registered learnership (before 1 October 2011), a deduction from income equal to the lesser of R30 000 or the annual equivalent of the remuneration of the learner; and
  • Upon completion of the registered learnership agreement (before 1 October 2011) a deduction from income equals to the lesser of R30 000 or the annual equivalent of the remuneration of the learner.