The department of science and innovation has eliminated the backlog of applications from companies seeking tax breaks for doing research and development (R&D), but the take-up remains modest, parliament heard on Wednesday.

Companies can claim a 150% tax deduction on their operational expenses for qualifying R&D activities, which, at a corporate tax rate of 28%, translates into 14c for every rand spent on R&D.

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now