Learn More, Earn More: Claim back up to R 120 000 from the learnership tax allowance programme.

Training and development for employees plays a vital role in the growth and success of a company.

But the concern of a limited budget leaves the employer to think that employees “will learn on the job”. Fortunately, employers will be pleased to know that the learnership tax allowance (section 12H of the Income Tax Allowance Act No. 58 of 1962) has been introduced by SARS as an incentive for employers to encourage skills development, though the implementation of learnerships, within their workplaces and while simultaneously contributing to job creation and economic growth.

It’s effectively a tax deduction, whereby an employer (or company) may claim tax for the financial year and, the tax incentive is permitted for any of its employees or unemployed individuals in terms of a registered learnership agreement settled between the ‘learner’, employer and the relevant SETA before 1 April 2022. This agreement has been registered with a specific SETA (Skills Education Training Authorities), in compliance with the Skills Development Act. Employers must be mindful to complete IT180’s in respect of all learnership agreements for which a tax allowance should be successfully claimed.

The allowance will be higher for those employees who have a disability partaking in the learnership agreement, as compared to those without a disability.

Person without disability
R 80 000

Person with disability
R 120 000

A deduction of the Learnership Tax Allowance constitutes a deduction in addition to other income tax deductions allowable to employers for the employment and skills development of employees. If a learnership is terminated before a period of 12 full months, the employer will be entitled to a pro-rata portion of the commencement allowance, regardless of the reason for the termination of the learnership. The learnership tax allowance is available until April 2022.


Source: http://www.sars.gov.za/AllDocs/LegalDoclib/Notes/LAPD-IntR-IN-2012-20%20-%20Additional%20Deduction%20Learnership%20Allowance.pdf


For more information on learnership implementation and how learnerships can benefit your organisation, please feel free to contact one of our offices:

Brenda Meyer- Western Cape 021 486 1000

Venessa Kidgel- KwaZulu Natal and Eastern Cape- 031 705 3225

Andrew Hay- Gauteng/ Inland – 011 027 9001