This week’s Budget Speech delivered some good news for employers – the Section 12(H) Learnership Tax Incentive has once again been extended, this time by three years until 31 March 2027.
Section 12H of the Income Tax Act allows employers to claim an allowance in respect of all qualifying learnership agreements entered in a year, provided there is a formal learnership contract in place.
The Learnership Tax Incentive was originally introduced in October 2001 to incentivise employers to invest in training and to encourage skills development and job creation.
The latest extension means that employers can still claim the applicable tax allowances for learnership agreements entered on or before 31 March 2027.
Learnerships provide a wealth of benefits across the board including tax and B-BBEE advantages for companies as well as encouraging skills development, transformation and economic growth.
