Many businesses misunderstand the Employment Tax Incentive (ETI). It is not  a tax deduction you claim at year-end like Section 12H. The ETI is a direct, monthly subsidy from the government designed to encourage youth employment. It functions as a cash-back mechanism that reduces your company's monthly PAYE tax liability . You claim it directly on your monthly EMP201 submission to SARS. If your ETI claim is larger than your PAYE bill, the extra amount can be refunded to you.