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News & Press: SARS operational & eFiling questions

Pre-approval system of R & D expenses at the Dept of Science and Technology

03 March 2014   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical 

The answer to this query is based on legislation as at 2014/03/03.

 Q: Are you aware of any implementation problems with the new pre-approval system of the R & D expenses with the DST to receive the a 11D tax incentive 150% deduction?

 A: In accordance with the amendments SARS is no longer entrusted with the responsibility of approving or rejecting the R&D claims, as the responsibility to determine the taxpayer’s eligibility to qualify for the additional 50% deduction now lies with the Minister of Science and Technology.

S (2)(a)(iv) clearly states: "expenditure is incurred on or after the date of receipt of the application by the Department of Science and Technology for approval of that research and development in terms of subsection (9)".

This therefore suggests that the date of receipt an application may not be back-dated. Post 1 October 2012 am I not aware of any alternative other than the pre-approval of the incentive before it can be claimed.


Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.


The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

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