South Africa offers any company undertaking eligible R&D activity an additional 50% deduction, i.e. a total 150% ‘super deduction’ on qualifying expenses. Pre-approval is required and turnaround times for processing pre-approval applications can be lengthy, estimated at between 6-12 months.
As the process is a forward looking, pre-approval, process, companies are encouraged to have a high
level understanding of the project’s ongoing activities, as well as potential challenges involved over a
prospective 1-3 year period.