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Claiming for the section 12H learnership allowance

Monday, 10 November 2014   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

Q: I am running an accounting and tax practice and I employ youth fresh from universities and colleges. Once they get experience they are taken by other employers who are looking for experienced staff. I understand that my company can claim up to R30 000 per year as long as the person being trained is 35 years and below and the company should be registered for PAYE and may be a certain seta. Where do I register for the company to be eligible to claim? How do register for my company to be recognised as a trainer for the youth subsidy? Please assist me with the registration process.

A: We are not quite sure what you mean when you refer to "a trainer” and the "youth subsidy”.  From the reference to the R30 000 per year we assumed that you are not referring to the employment tax incentive, but rather to the section 12H (of the Income Tax Act) additional deduction in respect of learnership agreements.  

Section 12H does not require that the employer be registered (as a trainer or otherwise).  The requirement is that the ‘learner’ must be a party to a registered learnership agreement with an employer and that agreement was entered into pursuant to a trade carried on by that employer.  

A ‘learner’ means a learner as defined in section 1 of the Skills Development Act, 1998 and a ‘registered learnership agreement’ means a learnership agreement that is—

(a) registered in accordance with the Skills Development Act, 1998; and

(b) entered into between a learner and an employer before 1 October 2016.  

You must complete the IT180 (Declaration by employer for the purpose of claiming a deduction for an allowance in respect of a learnership agreement or contract of apprenticeship).  The service offered by SAIT is limited to guidance and we can’t assist you with the registration process.  Interpretation note 20 deals with the learnership allowance in detail and should be referred to for more detail.  

Disclaimer: Nothing in this query and answer should be construed as constituting tax advice or a tax opinion. An expert should be consulted for advice based on the facts and circumstances of each transaction/case. Even though great care has been taken to ensure the accuracy of the answer, SAIT do not accept any responsibility for consequences of decisions taken based on this query and answer. It remains your own responsibility to consult the relevant primary resources when taking a decision.



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.

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