Implementing learnerships is a powerful strategy for B-BBEE points and tax incentives. However, businesses must be aware of a significant financial risk: learner dropouts. High dropout rates are a major concern, as they can lead to the forfeiture of your most valuable financial incentive. The Financial Stake: The Completion Allowance The Section 12H tax incentive is split into two parts: an Annual Allowance and a Completion Allowance. The completion allowance (e.g., R40,000 f

The Section 12H Learnership Allowance is one of the most powerful financial incentives for South African employers. Its power lies in a "double deduction" feature: it is an additional  tax deduction, claimed over and above the normal deductions for employee wages and training costs. This directly reduces your taxable income, resulting in a substantial tax saving. To claim it, you must have a formal learnership agreement registered with the relevant SETA. The allowance is comp

What if your B-BBEE Skills Development spend wasn't just a compliance cost, but one of your smartest financial strategies? Many South African businesses fail to realize that the government has created a powerful framework of layered incentives that, when "stacked" together, can dramatically reduce the net cost of a learnership to almost zero. This "incentive stacking" combines benefits from SETA grants, SARS tax allowances, and PAYE subsidies for a single learner. At White Pa