CORPORATE TRAINING

Africa Skills Connect (Pty) Ltd corporate services aim to encourage employers to invest in their staff, not only to increase productivity and efficiency, but to allow them to access the benefits associated with employee upskilling.  Through strategic partnerships, we are able to roll-out training for corporates in various sectors, tailor-made to meet the employers’ current needs.

CORPORATE TRAINING AND THE BENEFITS TO CORPORATES

The government is prioritizing skills development and has decided to incentivize corporates for upskilling their staff. SARS has a tax allowance of up to R40 000.00 that an employer can claim for each employee on a twelve-month learnership. The R40 000.00 tax allowance is pro-rata over a 12-month period on a typical 12-month learning program, meaning an employer can claim a tax allowance of R3333.33 per month, even if an employee leaves the company or their services are terminated. An additional R40 000.00 can be claimed once the employee has successfully completed their 12-month training course and certified from an accredited institution.

The allowance is multiplied by the effective corporate tax rate in order to calculate the tax deduction allowable. The deduction does not affect an employer’s net income, as it’s a write-off against their income corporate tax.

Example:

Assessment Allowance

R40 000 / 12 = R3 333.33 (monthly claimable amount)

End of 12-month learnership = R40 000 * 28% (corporate tax) = R11 200

Completion Allowance

Once certificate is issued = R40 000 * 28% (Corporate tax) = R11 200

Total tax write-off on tax bill = R22 400 per learner

Training can also benefit a company’s BBBEE status. This will allow them to position themselves competitively in procurement process. It is also a commitment by entities to social responsibility and a means of demonstrating its contribution to the development of a more inclusive and equitable economy.

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