South Africa

R&D Super Deduction and Depreciation Allowance

South Africa provides R&D incentives with the goal of encouraging private-sector investment in scientific and technological R&D activities.

Description of Incentive

  • R&D Super Deduction –  South Africa allows a deduction equal to 150% of expenditure incurred directly for research and development activities. Companies must be pre-approved by the Department of Science and Technology to be eligible for the deduction.
  • R&D Accelerated Depreciation – Capital expenditure incurred on machinery or plant used for R&D are eligible for accelerated depreciation. Rates vary from 20% to 50% and depend upon the age of the machinery, when it was first bought and how many years its been in use.

Eligibility Requirements

A wide range of industries are eligible for the super deduction, including:

  • Software
  • Pharmaceutical
  • Energy
  • Automotive
  • Manufacturing
  • Agriculture
  • Mining and natural resource

Qualified R&D activities must be performed within South Africa and involve a process of experimentation, generate new knowledge and result in a new or improved product or process.

Other Considerations

R&D benefits are able to be carried forward only when the business receiving the deduction is in a tax loss position.


Swanson Reed offers the following services:

  • Advice on tax preparation relevant to claiming the R&D tax credits incentive
  • Preparation of documents relating to filing and substantiating a R&D taxation claim
  • R&D tax advice and consultations
  • R&D tax claim planning and preparation

For a full range of services in relation to the credit, please click here.