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Pretoria - Tax incentives to promote skills development and job creation were announced in the budget, including a substantial youth employment subsidy.
To support job creation, a youth employment subsidy in the form of a tax credit costing R5bn over three years will be introduced.
It will be administered by the SA Revenue Service through the PAYE system to limit abuse, ensure maximum liquidity and ease business compliance.
The learnership tax incentive, designed to support youth employment, will expire in September 2011.
The tax expenditure associated with this incentive is estimated to have amounted to R324m in 2007/08, but its effectiveness is difficult to assess.
Government proposes to extend the incentive for five years, subject to an analysis of its effectiveness by business sector and training authorities as well as the department of higher education and training.
The review will take place during 2011.
To support the objectives of the industrial policy action plan and the new growth path, businesses making greenfield and/or brownfield investments qualify for tax relief.
Greenfield investments in industrial development zones qualify for additional relief. The government will consider expanding incentives for labour intensive projects in industrial development zones.
To support job creation, a youth employment subsidy in the form of a tax credit costing R5bn over three years will be introduced.
It will be administered by the SA Revenue Service through the PAYE system to limit abuse, ensure maximum liquidity and ease business compliance.
The learnership tax incentive, designed to support youth employment, will expire in September 2011.
The tax expenditure associated with this incentive is estimated to have amounted to R324m in 2007/08, but its effectiveness is difficult to assess.
Government proposes to extend the incentive for five years, subject to an analysis of its effectiveness by business sector and training authorities as well as the department of higher education and training.
The review will take place during 2011.
To support the objectives of the industrial policy action plan and the new growth path, businesses making greenfield and/or brownfield investments qualify for tax relief.
Greenfield investments in industrial development zones qualify for additional relief. The government will consider expanding incentives for labour intensive projects in industrial development zones.
