About the section 12h tax incentive

The Section 12H Tax Incentive offers employers, who implement recognized learnerships and provide accredited workplace training, with an added tax deduction over and above their usual tax deductions. This added deduction is envisioned to encourage employers to create jobs and train employees in a controlled environment.

The Section 12H Tax Incentive, which is specified in the Income Tax Act of 1962 as modified, was initially available for all learnership agreements entered into on or after the 1st of October 2001 up until the 1st of October 2016 during which all level of qualification were equally incentivised. After review in 2016, the Section 12H Tax Incentive was found sufficiently effective and therefore extended and amended with:

A new clause of 1 April 2024, the inclusion of changed incentives for different levels of qualifications to encourage skills development in categories where demand is the highest and the improvement of analysis mechanisms through the enforced completion of the IT180 form by all employers who claim the Section 12H Tax Incentive.