R&D tax incentive (Section 11D) in South Africa The deduction most businesses leave on the table.
Section 11D lets qualifying research and development claim a 150% tax deduction — and most eligible SA businesses either don't know it exists or assume it's only for pharma and universities.
What actually qualifies as R&D
Section 11D applies more broadly than most businesses assume — software, process improvement and product development can all qualify.
Eligibility
- Qualifying R&D activity assessment
- Software & product-development claims
- Process-improvement R&D
- Documentation & record-keeping setup
The process
- DSI (Department of Science & Innovation) pre-approval support
- 150% deduction claim preparation
- SARS documentation & substantiation
- Annual claim renewal
Beyond the claim
- R&D tax planning alongside other incentives
- Structuring R&D spend for future claims
- Claim history for investor due diligence
- Coordination with your existing tax return
R&D structuring tied to a raise?
Where an R&D claim history feeds into an investor pitch or a capital raise, that's deal-adjacent — our colleagues at Caban Corporate Advisors can help position it. One group, seamless handover.
Go to CabanFrequently asked questions
Short, plain answers to what South African business owners ask us most.
What is the Section 11D R&D tax incentive?
Section 11D of the Income Tax Act lets companies claim a 150% deduction on qualifying operational research and development (R&D) expenditure. SARS says the incentive applies to activities undertaken until 31 December 2033.
Does software development qualify as R&D?
It can. Software, process improvement and product development can all qualify, provided the activity meets the criteria. TBL Accounting assesses whether your work qualifies before you apply.
Do I need approval before claiming the deduction?
Yes. SARS allows the deduction only where the R&D was pre-approved by the Minister and the taxpayer holds an approval letter from the Department of Science and Innovation (DSI). TBL Accounting supports the pre-approval application and the SARS documentation.
Is the R&D incentive only for large companies or pharmaceutical firms?
No. Many eligible South African businesses assume it is only for pharma and universities, or do not know it exists. Software, process improvement and product development can qualify.
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Tell us what you've been building and a named, qualified accountant will assess whether Section 11D applies — no queue, no junior.
- 1You tell us where things stand.
- 2A named accountant tells you what they would look at first.
- 3You decide what happens next.