Get The Maximum Benefit on Tax Incentives and BBBEE Compliance
Maximize your BBBEE score at a fraction of the cost and make an impact towards BBBEE transformation
Our services include a range of simple, effective business tools specifically developed to help business unravel the complexities of the Codes of Good Conduct and to turn compliance into a growth strategy that creates a measurable competitive brand edge.
Specialising in Skills Development Facilitation, we follow a different approach to skills development than most. Our strategy means that instead of trying to spend your full B-BBEE budget, you spend only the portion that will get you the maximum number of points.
All courses we offer are fully accredited by the national qualifying authority (SAQA), and registered with the relevant SETA.
- A Maximum of R 80 000 per learner per year if able bodied.
- A Maximum of R 120 000 per learner per year if disabled.
*Over 2 years: (Depending on start and end dates of learnerships) Year 1 – Annual allowance of 50% – Year 2 – Completion allowance of 50% (Please also note that the allowance is a taxable expense)
SETA Grants and funding Mandatory, Discretionary and Pivotal Grants could be claimed from the relevant SETA. As these programmes are properly registered with the applicable SETA, companies may apply for grant funding.
*Tax Rebates According to the relevant legislation (Taxation Laws Amendment Act, as Amended and Gazetted on Government Gazette 40562, 17 January 2017) this learnership would qualify for tax rebates on a deemed cost of R120 000. This would translate into a total estimated tax rebate of R33 600 per learner, if the tax rate is 28%. Half of this would be claimable upon registration with SARS, on the first SARS tax return submission following the commencement of the programme. The balance is claimable on the next SARS tax return submission, after the programme and if the learner passed. Expenses on Skills development and salaries are normal business expenses and therefore pre-tax, which adds to the cost reduction.
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What REATS Offers You
REATS Training is a quality company specialising in Skills Development. Built on training and learning experiences, our core motives and mission are to provide professional and aﬀordable training solutions to individuals, small to medium and large businesses within South Africa.
Specialising in skills development initiatives where we strictly align Skills Development to the BBBEE codes of good practice, ensuring your specific needs are met with a wide spectrum of courses to suit companies from diﬀerent industries.
TAX ALLOWANCES AND BENEFITS
Section 12 H:
A Maximum of R 80 000 per learner per year if able bodied. (*Over 2 years)
A Maximum of R 120 000 per learner per year if disabled. (*Over 2 years)
*Over 2 years means: (Depending on implementation and completion dates of learnerships)
Year 1 – Annual allowance of 50% and Year 2 – Completion allowance of 50%
SETA Grants and funding Mandatory, Discretionary and Pivotal Grants could be claimed from the relevant SETA. As these programs are properly registered with the applicable SETA, companies may apply for grant funding
Section 11 A: A BRIEF OUTLINE OF THE GENERAL DEDUCTION FORMULA
Whether or not expenses incurred by a taxpayer can be deducted from his/her gross income will depend on the results of a thorough analysis of the general deduction formula. The general deduction formula is contained in section 11(a) read with section 23(g) of the Income Tax Act 58 of 1962 (the Act). While section 11(a) provides positively for what may be deducted, section 23(g) provides negatively for what may not be deducted.
Therefore, an amount claimed as a deduction must satisfy both sections. Always bear in mind that deductions can only be claimed during the year of assessment in which they are incurred.
Employee Tax Incentive (ETI):
It is an incentive aimed at encouraging employers to hire young and less experienced work seekers. It reduces an employer’s cost of hiring young people through a cost-sharing mechanism with government, while leaving the wage the employee receives unaffected. The employer can claim the ETI and reduce the amount of Pay-As-You-Earn (PAYE) tax payable by the amount of the total ETI calculated in respect of all qualifying employees.
HOW WILL OUR PROGRAM WORK FOR YOU?
REATS provides suitable candidates which are assessed and evaluated. Hereby we ensure that the learners are competent for each required learnership.
The B-BBEE Codes have provided extra incentives for companies that employ and invest in the development of black people with disabilities.
An interesting indicator with regards to skills development – if you assist unemployed learners with training to obtain jobs in the industry on completion of their learnership then you will be allowed to claim additional bonus points for Skills Development.
REATS has its operational control in the capable hands of experienced management and professionals who apply their expertise to integrate our service with that of its clients to meet their requirements for an effective and high-quality service.
OUR VISION & MISSION
We strive to provide professional services by maintaining our reputation for excellent service delivery.
Serving our clients with integrity, our mission is to maximize our clients BBBEE scores for a fraction of the cost and making an impact towards BBBEE transformation. We conduct business with integrity deliver training and services that will improve and change the lives of all South Africans.
REATS training has been in the industry for the past 8 years, not only benefitting our clients but also creating shared value by developing our learners and fulfilling the true motive behind BBBEE transformation.