News and Views



Section 11D of the South African Income Tax Act (the “Act”), makes provision for a tax incentive scheme, commonly referred to as the Research and Development (R&D) tax incentive. The R&D tax incentive is a very attractive tool for any business, as it offers businesses the opportunity to deduct R1.50 from its taxable income for every R1.00 spent on R&D.

Recent statistics regarding the incentive

The R&D tax incentive has provided over R50 billion of support to businesses since its inception in 2006. During the period November 2006 to February 2019, 1349 applications have been submitted to the Department of Science and Innovation (the “DSI”). 845 of these submitted applications have been approved, which equates to an approval rate of approximately 63%.

Which businesses should apply for the incentive?

A business will be eligible for a tax deduction equal to 150% of expenditure incurred, if such expenditure is incurred directly and solely for R&D activity in South Africa, and such expenditure is incurred after the date on which an application for approval of the R&D was submitted to the DSI. Therefore, any business which conducts R&D in South Africa (and which has not done so yet for current or future projects) should consider applying for the R&D tax incentive.

What qualifies as R&D?

In terms of the Act, R&D means systematic investigative or systematic experimental activities of which the result is uncertain, the purpose of which is any one of:

discovering non-obvious scientific or technological knowledge;
creating or developing an invention as defined in the South African Patents Act;
creating or developing a functional design as defined in the South African Designs Act;
creating or developing a computer program as defined in the South African Copyright Act;
creating or developing a multi-source pharmaceutical product; and
conducting a clinical trial as provided for in the Guidelines for good practice in the conduct of clinical trials with human participants in South Africa.
Further, the deduction is not limited to the above project aims, but also for projects for which the aim is a significant and innovative improvement to any of the above inventions, functional designs or computer programs.

Can R&D be outsourced?

The R&D tax incentive includes within its scope expenditure related to outsourced R&D, where such R&D is outsourced to:

an institution, board or body that is exempt from normal tax under section 10 (1)(cA) of the Act (e.g. South African universities and science councils);
the Council for Scientific and Industrial Research;
a company forming part of the same group of companies, and the company that carries on the R&D does not claim its R&D expenditure with the R&D tax incentive; or
another company, provided that only the outsourcing company may determine or alter the methodology of the research.
This provides a practical alternative for businesses which consider conducting R&D, but which do not have the skills and/or facilities to conduct the desired R&D internally.

What about confidentiality of information?

Subsection (18) determines that all matters must be kept secret by all employees of the DSI. Therefore, confidentiality is maintained and there is no risk of competitors acquiring sensitive information or that the matter disclosed in an R&D tax incentive application can be used in an attack against registered IP, such as a patent.

Progress made in the processing of applications

In the last decade, applicants for the R&D tax incentive have experienced several issues with obtaining timeous approval for the stipulated supercharged tax deduction. The reasons for these issues mainly related to a shortage of skilled resources at the DSI capable of assessing the applications. This shortage created a significant backlog in the processing of applications and resulted in long and frustrating waiting periods for applicants before receiving a decision.

The good news is that, according to information available to us, the backlog has recently been substantially eradicated and applicants are receiving feedback much more promptly than before. The application process has recently also become more transparent, and one can enquire about the progression of one’s application at any time. A last bit of good news is that, in the event that the DSI reaches a decision to deny an application, an applicant is provided an opportunity to respond to the DSI’s decision to convince the DSI to approve the application.

Who has experience and can assist businesses with their R&D tax incentive applications?

KISCH IP has an excellent track record in assisting clients in successfully obtaining approval for R&D projects in terms of the R&D tax incentive. If your business conducts R&D in South Africa and has not yet applied for the section 11D R&D tax incentive, you are welc

Kobus du Raan

Senior Associate
Patent Department
Email kobusd@kisch-ip.com
Tel +27 10 510 3490

This Post Has 116 Comments

  1. Buying android app reviews can greatly benefit app developers and businesses.
    Positive reviews increase the visibility and credibility of an app, attracting more downloads and users.
    They also improve app store rankings and boost organic growth.

    Additionally, these reviews provide valuable feedback,
    allowing developers to enhance their app’s performance and user experience.
    Investing in android app reviews can be a smart strategy for app developers to stand out in the competitive marketplace.

  2. Soccer-manager.eu

    Hi there would you mind letting me know which web host you’re utilizing?

    I’ve loaded your blog in 3 completely different internet browsers
    and I must say this blog loads a lot quicker then most. Can you recommend a good
    hosting provider at a fair price? Kudos, I appreciate it! http://Soccer-manager.eu/forum/profile.php?id=1561198

  3. https://cn.video24chat.ru

    Hi, I do believe this is a great blog. I stumbledupon it 😉 I
    am going to return once again since i have saved as a favorite it.
    Money and freedom is the best way to change, may you be rich
    and continue to guide other people.

  4. Www.Die-Seite.com

    You actually make it seem so easy with your presentation but
    I to find this topic to be really one thing which I think I
    might by no means understand. It kind of feels too complicated and extremely huge for me.
    I’m having a look forward for your next publish,
    I will attempt to get the grasp of it! http://Www.Die-Seite.com/index.php?a=stats&u=meredithrox

  5. pendleton whiskey midnight

    I am curious to find out what blog system you happen to be utilizing?
    I’m having some small security issues with my latest blog and I would like to find something
    more risk-free. Do you have any recommendations?

  6. ??????? ?????? ? ??????

    Hi, I think your site might be having browser compatibility issues.
    When I look at your website in Ie, it looks fine but when opening in Internet Explorer, it has some overlapping.
    I just wanted to give you a quick heads up! Other then that, very good blog!

  7. http://new.elblaski.elblag.pl

    Howdy exceptional blog! Does running a blog such as this require a massive
    amount work? I have no understanding of computer programming but I had been hoping to start my own blog soon. Anyway, if
    you have any recommendations or techniques for
    new blog owners please share. I understand this is off subject but I just needed to ask.

    Here is my website; http://new.elblaski.elblag.pl

  8. http://top.radomski.radom.pl

    Good post. I learn something new and challenging on blogs I stumbleupon on a daily basis.
    It’s always exciting to read articles from other authors and practice something from their web sites.

    Feel free to surf to my webpage: http://top.radomski.radom.pl

  9. pusat4d login

    Thank you for the auspicious writeup. It if truth be told was once a entertainment account it.
    Look complex to far brought agreeable from you!
    By the way, how can we communicate?

  10. It’s in point of fact a nice and useful piece of information. I’m happy that you just
    shared this helpful info with us. Please keep us up to
    date like this. Thank you for sharing.

  11. Migration-bt4.Co.uk

    After I originally commented I appear to have clicked on the
    -Notify me when new comments are added- checkbox and from now on whenever a
    comment is added I recieve 4 emails with the exact same comment.
    Perhaps there is a means you can remove me from
    that service? Many thanks! https://Migration-bt4.Co.uk/profile.php?id=79214

  12. Hello there, You have done an incredible job.
    I will certainly digg it and personally recommend to my friends.
    I’m confident they will be benefited from this web site.

  13. Links.Musicnotch.com

    It’s a shame you don’t have a donate button! I’d
    most certainly donate to this brilliant blog! I suppose for now i’ll settle for book-marking and
    adding your RSS feed to my Google account. I look forward to new updates
    and will talk about this website with my Facebook group.
    Talk soon! http://links.musicnotch.com/buford387553

  14. Jonh

    Good day! This is my first visit to your blog! We are a collection of volunteers and starting a new
    initiative in a community in the same niche. Your blog
    provided us useful information to work on. You have done a wonderful job!

  15. Shalita

    I feel this is one of the so much vital info for me. And i’m glad reading your article.
    However want to statement on some general things, The web site taste is great, the articles is really great : D.

    Excellent job, cheers

  16. Baltazar

    Does your website have a contact page? I’m having a tough time locating it but,
    I’d like to shoot you an e-mail. I’ve got some creative ideas for your blog you might be interested in hearing.
    Either way, great site and I look forward to seeing it grow over time.

  17. Navia

    Hi there, this weekend is good designed for me, because this occasion i am
    reading this wonderful educational piece of writing here
    at my residence.

  18. Sully

    I have been browsing online more than 3 hours today, yet
    I never found any interesting article like yours. It is pretty worth enough for me.

    In my view, if all webmasters and bloggers
    made good content as you did, the internet will
    be much more useful than ever before.

  19. Shalita

    Hi there, after reading this awesome post i am as well cheerful to share my knowledge here with friends.

  20. Shauntrice

    I like the helpful info you provide in your articles.
    I’ll bookmark your blog and check once more right here frequently.
    I’m slightly certain I’ll learn lots of new stuff proper here!
    Good luck for the following!

  21. Consuela

    I was pretty pleased to uncover this page. I need to to thank you for your
    time for this particularly wonderful read!!
    I definitely liked every little bit of it and I have you book-marked
    to check out new stuff on your blog.

  22. Sharifa

    Thank you for the good writeup. It in fact was a amusement account it.

    Look advanced to more added agreeable from you!
    By the way, how can we communicate?

  23. Torie

    What a stuff of un-ambiguity and preserveness of valuable knowledge about
    unpredicted feelings.

  24. Analuisa

    Wonderful article! We will be linking to this great article
    on our website. Keep up the good writing.

  25. Amberlee

    Hello! Someone in my Facebook group shared this website with
    us so I came to give it a look. I’m definitely enjoying the information. I’m bookmarking and will be tweeting this to my followers!
    Fantastic blog and excellent design and style.

  26. Chalea

    I savor, lead to I found just what I was looking for.
    You have ended my 4 day long hunt! God Bless you man. Have a nice day.

  27. Amal

    Awesome post.

  28. Yohance

    I like the valuable info you provide in your articles.
    I’ll bookmark your weblog and check again here regularly.
    I’m quite sure I’ll learn plenty of new stuff right here!
    Best of luck for the next!

  29. Jontue

    Appreciate this post. Will try it out.

  30. Meyosha

    I have been browsing on-line more than three hours lately, yet I never found any interesting article like yours.
    It is pretty value enough for me. Personally, if all web owners and bloggers made good content as you did, the web will be much more helpful
    than ever before.

  31. Nakesha

    Great web site. A lot of useful information here.
    I am sending it to a few buddies ans additionally sharing in delicious.
    And naturally, thanks on your sweat!

  32. Candee

    Hi, Neat post. There’s a problem along with your website in internet explorer, could check
    this? IE still is the marketplace chief and a big element of people
    will miss your wonderful writing due to this problem.

  33. Soo

    Heya i am for the primary time here. I found this board
    and I in finding It truly useful & it helped me out much.
    I hope to provide one thing again and help others like you aided me.

  34. Treva

    Great blog! Do you have any helpful hints for aspiring writers?
    I’m planning to start my own website soon but I’m a little lost on everything.
    Would you suggest starting with a free platform like WordPress
    or go for a paid option? There are so many choices out there that I’m totally confused ..

    Any recommendations? Thank you!

  35. Ashely

    great points altogether, you just received a new reader. What would you recommend about your
    put up that you just made some days in the past? Any sure?

  36. Ciana

    Hello, its pleasant post concerning media print, we
    all know media is a fantastic source of information.

  37. Travaris

    What a information of un-ambiguity and preserveness of valuable experience about unexpected emotions.

  38. Celest

    I love reading through an article that will make
    men and women think. Also, thank you for allowing for me
    to comment!

  39. Leahanna

    I all the time emailed this website post page to all
    my associates, because if like to read it next
    my links will too.

  40. Ruthy

    Whats up very cool blog!! Guy .. Excellent .. Wonderful .. I’ll
    bookmark your blog and take the feeds also? I am happy
    to search out numerous useful info here within the
    publish, we’d like develop more techniques in this regard,
    thank you for sharing. . . . . .

  41. Tynishia

    I’m not sure where you are getting your information, but good topic.

    I needs to spend some time learning more or understanding more.
    Thanks for magnificent info I was looking for this information for my mission.

  42. Brant

    It’s an amazing post for all the online visitors;
    they will take advantage from it I am sure.

  43. Terrian

    Yes! Finally someone writes about website.

  44. Hiep

    Saved as a favorite, I really like your site!

  45. Forum.Fne82.org

    Hello there! This is kind of off topic but I need some help from
    an established blog. Is it very hard to set up your own blog?
    I’m not very techincal but I can figure things out pretty fast.
    I’m thinking about creating my own but I’m not sure where
    to start. Do you have any points or suggestions?

    Cheers https://Forum.Fne82.org/profile.php?id=331920

  46. Latreece

    Appreciating the persistence you put into your website and in depth information you
    provide. It’s great to come across a blog every once in a while that isn’t the
    same outdated rehashed information. Excellent read!
    I’ve saved your site and I’m including your RSS feeds to my Google account.

  47. Raman

    I’ve learn some good stuff here. Definitely worth bookmarking for revisiting.
    I surprise how much attempt you set to make one of these great informative site.

  48. Korin

    What’s up, I log on to your new stuff daily.

    Your story-telling style is awesome, keep it up!

  49. Tanasia

    This article offers clear idea in support of the new
    visitors of blogging, that actually how to do running
    a blog.

  50. Nikolas

    Great work! That is the type of information that are meant to
    be shared across the net. Disgrace on the search engines for
    not positioning this post higher! Come on over and visit my site .
    Thank you =)

  51. Joh

    Have you ever considered creating an e-book or guest authoring on other blogs?
    I have a blog based upon on the same ideas you discuss and would really like to have you share some
    stories/information. I know my subscribers would enjoy your work.
    If you are even remotely interested, feel free to send
    me an email.

  52. Kareema

    It’s fantastic that you are getting ideas from this paragraph
    as well as from our argument made here.

  53. Loriann

    Great web site you’ve got here.. It’s difficult to find high-quality writing like yours nowadays.
    I really appreciate individuals like you!
    Take care!!

  54. Kipp

    It’s really a nice and useful piece of info. I am satisfied that
    you just shared this helpful info with us. Please keep us
    informed like this. Thanks for sharing.

  55. Tomasa

    I’m not sure where you’re getting your information, but
    great topic. I needs to spend some time learning much more or understanding more.
    Thanks for great info I was looking for this information for my mission.

  56. Lashon

    If you would like to get a good deal from this paragraph then you have to apply such techniques to
    your won webpage.

  57. Nico

    Hi! I just wanted to ask if you ever have any issues with hackers?
    My last blog (wordpress) was hacked and I ended up losing several weeks of hard work due to no data backup.
    Do you have any methods to stop hackers?

  58. Chiketa

    Great delivery. Great arguments. Keep up the great effort.

  59. Tamar

    continuously i used to read smaller articles or reviews that as well clear their
    motive, and that is also happening with this piece
    of writing which I am reading at this time.

  60. Damonique

    whoah this weblog is wonderful i really like studying
    your posts. Stay up the great work! You realize, many people are looking round
    for this information, you can help them greatly.

  61. Monigue

    I really like it whenever people come together and share views.
    Great blog, continue the good work!

  62. Aubrie

    Pretty element of content. I just stumbled upon your
    blog and in accession capital to say that I get in fact loved account your
    weblog posts. Any way I will be subscribing on your feeds and even I
    success you get admission to persistently rapidly.

  63. Clyde

    Thanks for a marvelous posting! I actually enjoyed reading
    it, you will be a great author. I will make certain to bookmark your blog and will often come back from
    now on. I want to encourage that you continue your great writing, have a nice afternoon!

  64. Sandrika

    I blog quite often and I really thank you for your content.
    This article has really peaked my interest. I will take a note of your blog and keep checking for new details about once
    per week. I subscribed to your RSS feed too.

  65. Kristien

    I just couldn’t go away your website prior to suggesting that
    I actually loved the usual information a person supply for your guests?

    Is gonna be again incessantly in order to check up on new posts

  66. Ubaldo

    Great article! We will be linking to this great article on our website.
    Keep up the great writing.

  67. Aiman

    hello there and thank you for your information – I have certainly picked up anything new from right here.
    I did however expertise a few technical issues using this website, since I experienced to reload the
    site a lot of times previous to I could get it to load properly.

    I had been wondering if your hosting is OK? Not that
    I am complaining, but sluggish loading instances times will
    often affect your placement in google and could damage your high-quality score if ads and marketing with Adwords.
    Well I’m adding this RSS to my e-mail and can look out for
    much more of your respective fascinating content. Make sure
    you update this again soon.

  68. Annais

    Hello there! This is my 1st comment here so I just wanted to give a quick shout out and say I genuinely enjoy reading your articles.
    Can you suggest any other blogs/websites/forums that cover the same subjects?

    Many thanks!

  69. Percy

    I have been surfing online greater than three hours nowadays,
    but I never discovered any interesting article like yours.
    It is pretty worth sufficient for me. In my opinion, if all website owners
    and bloggers made excellent content as you probably did, the
    internet shall be much more helpful than ever before.

  70. Wai

    Fabulous, what a weblog it is! This weblog presents helpful data to us, keep it up.

  71. Marietta

    I visited several web sites except the audio feature for
    audio songs existing at this website is genuinely wonderful.

  72. Conrado

    What’s up, just wanted to say, I loved this post.
    It was helpful. Keep on posting!

  73. Sandrika

    After I originally commented I seem to have clicked on the -Notify me when new comments are added- checkbox and now each time a comment is added I receive four emails
    with the exact same comment. Perhaps there is a way you
    can remove me from that service? Kudos!

  74. Baudelia

    I just like the valuable information you provide on your articles.
    I’ll bookmark your blog and test again here frequently.
    I’m rather sure I’ll be informed many new stuff right here!
    Good luck for the next!

  75. Marshelle

    Nice blog right here! Also your website quite a bit up fast!
    What host are you the use of? Can I get your associate hyperlink to your host?
    I want my website loaded up as quickly as yours lol

  76. Teneka

    This info is worth everyone’s attention. When can I find out more?

  77. Linnea

    I need to to thank you for this wonderful read!!
    I certainly enjoyed every little bit of it. I’ve got
    you book-marked to look at new stuff you post…

  78. Frazier

    This post is genuinely a nice one it helps new internet users, who are wishing for blogging.

  79. Ursula

    Undeniably believe that which you said. Your favorite justification appeared to be on the net the simplest thing to be aware
    of. I say to you, I certainly get irked while people think about
    worries that they just don’t know about. You managed to hit the nail upon the top as well as defined out the whole thing without having side-effects , people can take a signal.
    Will probably be back to get more. Thanks

  80. Salicia

    Now I am going to do my breakfast, once having my
    breakfast coming again to read other news.

  81. Kraig

    I have been surfing on-line greater than 3 hours lately, yet I never discovered any fascinating article like yours.
    It is beautiful worth sufficient for me. Personally, if all site owners and bloggers made just right content material as
    you did, the internet might be a lot more useful than ever before.

  82. Sheba

    We are a group of volunteers and starting a new scheme in our community.
    Your site provided us with valuable information to work on. You’ve done a formidable activity and our entire community might be thankful to you.

  83. Arena

    I want to to thank you for this excellent read!! I certainly loved every little
    bit of it. I have you book-marked to look at new things you post…

  84. What’s Taking place i’m new to this, I stumbled upon this I have discovered It absolutely helpful and it has
    aided me out loads. I am hoping to give a contribution & help different users like its aided me.

    Good job. http://Globalcargo.com.pk/question2answer/question2answer/index.php?qa=674303&qa_1=bien-s%C3%BBr-voici-article-sur-les-fournisseurs-plomberie-qu%C3%A9bec

  85. seo_servive

    At this time it appears like Movable Type is the top blogging platform
    available right now. (from what I’ve read) Is that what
    you are using on your blog?

  86. Geri

    This website definitely has all of the information I needed about this subject and didn’t
    know who to ask.

  87. Felita

    whoah this weblog is fantastic i like reading your
    posts. Keep up the good work! You know, lots of people are hunting
    around for this info, you could help them greatly.

  88. Jeremy

    Hmm is anyone else having problems with the images on this blog
    loading? I’m trying to figure out if its a problem
    on my end or if it’s the blog. Any responses would be greatly appreciated.

  89. Malory

    Fastidious answer back in return of this question with real arguments and
    explaining the whole thing about that.

  90. Eason

    Superb post however I was wondering if you could
    write a litte more on this topic? I’d be very grateful if you
    could elaborate a little bit more. Thanks!

  91. Jamond

    Good day! I could have sworn I’ve been to your blog before but after
    browsing through a few of the posts I realized it’s new to me.
    Anyhow, I’m certainly happy I came across it and I’ll be book-marking it and checking
    back frequently!

  92. Maryjane

    It’s the best time to make some plans for the long run and it’s time to be happy.
    I’ve learn this publish and if I may just I wish to recommend you some interesting things or
    suggestions. Perhaps you can write next articles referring
    to this article. I desire to learn even more issues
    approximately it!

  93. Meg

    I don’t even understand how I stopped up right here, but I
    believed this publish used to be good. I do not recognize
    who you’re however certainly you are going to a famous blogger if you happen to are not already.


  94. Cason

    I loved as much as you will receive carried out right here.
    The sketch is tasteful, your authored material stylish.

    nonetheless, you command get bought an edginess over that you
    wish be delivering the following. unwell unquestionably come
    further formerly again since exactly the same nearly a lot often inside case you shield this increase.

  95. Cyndy

    Thanks for some other fantastic post. Where else may anybody get that kind of information in such
    a perfect approach of writing? I have a presentation subsequent week, and I’m on the search
    for such information.

  96. Remy

    What’s up, I check your blogs regularly. Your humoristic style is awesome, keep
    up the good work!

  97. Fredrica

    Howdy! Do you know if they make any plugins to assist with Search Engine Optimization? I’m trying to get my blog to rank
    for some targeted keywords but I’m not seeing very good
    results. If you know of any please share. Thank you!

  98. Macio

    This is very interesting, You’re a very skilled blogger.
    I have joined your rss feed and look forward
    to seeking more of your great post. Also, I’ve shared your site
    in my social networks!

  99. Macall

    It’s amazing to go to see this web page and reading the views of all mates on the topic of this article, while I
    am also keen of getting know-how.

  100. Rodderick

    Unquestionably believe that which you stated. Your favorite justification appeared to be on the internet the easiest thing to be aware
    of. I say to you, I definitely get irked while people consider worries that
    they just do not know about. You managed to hit the
    nail upon the top and defined out the whole thing without having side effect
    , people could take a signal. Will probably be back to
    get more. Thanks

  101. Shaneisha

    Hello Dear, are you truly visiting this web page daily,
    if so then you will absolutely take pleasant knowledge.

  102. Redmond

    This article provides clear idea for the new viewers of blogging, that really how to
    do running a blog.

  103. DIVA4D Togel

    Remarkable! Its truly awesome article, I have got much
    clear idea about from this paragraph.

Leave a Reply