KPMG launches Incentive Tax App
KPMG has launched an innovate, web-based app, the Learnership Incentive Tax Tool (LITT), which calculates learnership tax allowances and generates tax schedules at the press of a button. It also provides an additional tax deduction for registered learnerships.
Mohammed Jada (pictured), Head of Corporate Tax for KPMG in South Africa, says:
"This tool is an important development for encouraging greater employment and up-skilling the South African workforce. By getting this app, your company not only empowers the people in South Africa, but you will be able to derive government sanctioned additional tax benefits, the savings of which can be re-invested into your business."
The value of the additional deduction companies are able to claim depends on whether the learnership agreement/s were entered into before, or after, 1 October 2016, and the NQF level of the training on, or after, 1 October 2016. The additional tax deduction that companies can claim is between R20,000 and R60,000 per learner, and much more again when the learnership is successfully completed.
According to KPMG, the objectives of the tax incentive are to encourage job creation by reducing the cost of hiring new employees and offering learnerships, and also encouraging skills development in the workplace.
"Using KPMG LITT will maximise additional learnership tax deductions for business, with minimum costs of compliance, and provide the comfort of knowing that all required documentation to substantiate the tax deductions is stored and collated in one easy-to-access location."