Application process

To apply for the R&D Tax Incentive, a company can use the folowing link for online application:

http://taxincentive.dst.gov.za

Companies can also use the RD2 Application form and submit to the DSI via the following email: rndapplications@dst.gov.za. Note that only the R&D expenditure incurred on or after the date of receipt of the application by the DSI will be eligible for the deduction.
Also note that a valid application will have all the compulsory fields completed. Incomplete applications will not be accepted.

Company submits application

  • The company submits an application form to the DSI.
  • The DSI acknowledges receipt of application.
  • The application is assessed.

Adjudication

  • The assessment report and application form are presented to the Committee for adjudication.
  • The Committee makes a recommendation to the Minister of Science and Technology.

Decision

  • The Minister's decision letter on whether the R&D activities have been approved or not is sent to the company.
  • This letter serves as proof to SARS that the company's R&D activities have been approved when claiming the tax deduction.

Progress reporting

  • A company whose R&D activities have been approved must submit annual progress reports to the DSI, coinciding with their financial year-end tax reporting.
  • The company should keep records that support tax expenditure claims and progress with R&D.