Learnership Tax Rebates and the benefit to companies
When claiming learnership grants from your SETA, you can also claim a tax incentive when you register a learnership agreement with your SETA.
Learnership tax incentive was introduced to:
*Encourage skills development
*Job creation
*Providing an additional tax deduction for formal SETA registered training programmes
*Types of deduction
Two types of deductions are available, namely:
Annual allowance: to which the employer is entitled in any year of assessment in which a learner is a party to a registered learnership agreement.
Completion allowance: during any year of assessment in which the learner successfully completes the learnership.
Qualification New Old
Person without disability
NQF 1 – 6 R 40 000 R 30 000
NQF 7 – 10 R 20 000 R 30 000
Person with disability
NQF 1 – 6 R 60 000 R 50 000
NQF 7 – 10 R 50 000 R 50 000
The completion allowance is granted once-off in addition to the annual allowance and is deductible in the year of assessment in which the learner successfully completes the learnership, provided that sufficient proof of completion is supplied to SARS.
