GET YOUR LEARNERSHIP TAX REBATE & Upgrade your BBBEE Score Card

Promoting youth development and providing youth services is one area business contribute to, in an effort to relieve the social imbalances and contributing to job creation. Broad-Based Black Economic Empowerment (B-BBEE) legislation place more emphasis on skills development and on business owners to broaden the impact of their skills development. Business owners play a big role in creating employment opportunities for people aged 15-34 and one key area to which business can contribute to the skills development of the economy is through offering accredited trainings in the form of learnerships.

A learnership is a work-based approach to learning and gaining qualifications that is offered for a minimum of 12 months by the employer. Government recognises that business are profit driven and can not sorely contribute to job creation and skills development for philanthropic purposes, this has there for lead to the development of financial incentive for institutions contributing to skills development. Businesses can therefore claim Skills Development points for learnerships on their B-BBEE Scorecards and gain tax rebates on completed programmes.

 

Types of deduction

Two types of deductions are available to campanies, namely:

 

  1. 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.
  2. 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.

 

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Companies that wish to do business with government entities must obtain a BBBEE score. The current amendment on the BBBEE scoring system requires a company to attain 25 points for skills development. If the company does not score at least 40% of the 20 points they will automatically see drop on their BBBEE Level. The other 5 points are regarded as bonus points. Learnerships and soft skills training programmes there for play a key role in improving the BBBEE Score of the entity.

 

A prerequisite for attaining an points on the BEE Scorecard one needs to submit the following documents:

 

  • Workplace Skills Plan (WSP),
  • Pivotal Plan
  • Annual Training Report (ATR) prior to the deadline in April each year.

 

 

 

 

 

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