Employers implementing learnerships qualify for a deduction of up to R50 000 from declared income for each learnership completed.

APPLYING FOR INCENTIVES

1. Simply register a learnership agreement with FoodBev Seta.
2. At the beginning of the learnership, you may deduct 70% of the annual wages paid to an 18 (1) learner up to a maximum of R17 500 during the year of assessment, and deduct 100% of the learnership allowance paid to a 18 (2) learner up to a maximum of R25 000.
3. On completion of the learnership, your claim can amount to 100% of the annual wage paid to a worker 18 (1) or a learner 18 (2) up to a maximum of R25 000 during the year of assessment.
   Whilst the apprenticeship system remains in place, the same claims may be made for apprenticeships.
4. A deduction for the learnership allowance may be claimed for any year of assessment during which a learnership was entered into or completed as long as these criteria were satisfied on or after 1 October 2001.
5. To claim the tax incentive, fill in the form available on the SARS web site. Or print out a copy of the income tax form
6. The name of the SETA with which the learnership agreement is registered.
7. The title and code of the learnership allocated and issued by the Department of Labour.
8. The full names and ID numbers of the learner that is involved.
9. Proof that the employer has complied with all the requirements of the Skills Development Levies Act, 1999.

Where a number of learnership agreements exist, a schedule may be compiled and signed by the employer, provided that all of the information requested in the SARS form is included.

The incentives fall away if the employer in the learnership agreement is substituted by another employer, a learnership agreement is substituted with another learnership agreement with the same learner, or where more than one learnership agreement is entered into with the same learner and for the same learnership.

If a deduction has been allowed and the learnership ends (for any reason other than the death of the learner or incapacity through ill health or injury), any deduction that is allowed will be recouped for income tax purposes.

YOUR FOODBEV SETA CONTACT 

Contact Nontando Bunge on Reception (011) 253 7300, Direct (011)253 7325 or nontandob@foodbev.co.za 

Page Created: Monday, July 14, 2008