KPMG launches Tax Tool app
KPMG in South Africa has launched a Learnership Incentive Tax Tool (LITT), an app that provides an additional tax deduction for registered learnerships.
The firm said the objectives of the tax incentive were to encourage the creation of jobs by reducing the cost of hiring new employees and to encourage skills development.
Mohammed Jada, Head of Corporate Tax for KPMG in South Africa said the app allows companies to accurately and speedily calculate learnership tax allowances and generate tax schedules.
“This tool is an important development for encouraging greater employment and upskilling the South African workforce.
“By getting this app, your company not only empowers the people in South Africa, but you will be able to derive government sanctioned additional tax benefits,” said Jada.
The firm said the tool is a webbased solution that empowers companies to take control of all the necessary pieces of data required for the additional tax deduction, and provides an automated and efficient processing facility to generate the IT180 tax return form required for tax return purposes.
The incentive is available to employers who have entered into registered learnership agreements on, or after, October 1, 2001 but before April 1, 2022.
The value of the additional deduction companies are able to claim depends on whether the learnership agreement(s) were entered into before, or after, October 1, 2016, and the NQF level of the training on, or after, October 1, 2016. The additional tax deduction that companies can claim is between R20 000 and R60 000 per learner and further deductions when the learnership is successfully completed.
“Using KPMG LITT will maximise additional learnership tax deductions for business, with minimum costs of compliance,” said Jada.