KPMG SA has introduced the learnership incentive tax tool (LITT), a Web-based application that provides an additional tax deduction for registered learnerships.
According to the audit and management consulting firm, the tax incentive tool aims to encourage the creation of jobs by reducing the cost of hiring new employees, offering more learnerships and encouraging skills development in the workplace.
"KPMG LITT allows companies to accurately and speedily calculate learnership tax allowances and generates tax schedules online. By empowering companies with an automated processing facility, the app efficiently generates the requisite tax disclosure documents (IT180 tax return forms) based on the data inputs applied," says Mohammed Jada, head of corporate tax at KPMG SA.
"By getting this app, your company not only empowers the people in SA, but you will be able to derive government-sanctioned additional tax benefits, the savings of which can be re-invested into your business."
KPMG LITT is targeted at organisations that enter into a registered learnership agreement with employees between 1 October 2001 and 1 April 2022. The annual subscription offering comes in two different packages - the LITT Starter and LITT Ultimate product offering, adds the company.
"The tax deductions for learnerships is based on section 12H of the Income Tax Act guidelines, which differs from other types of tax. Using KPMG LITT will maximise additional learnership tax deductions for business, with minimum costs of compliance, and provide the comfort of knowing that all required documentation to substantiate the tax deductions is stored and collated in one easy-to-access location," notes Jada.
The value of the additional deduction companies are able to claim, he explains, depends on whether the learnership agreement(s) were entered into before, or after, 1 October 2016, and the NQF level of the training on, or after, 1 October 2016.
"The additional tax deduction that companies can claim is between R20 000 and R60 000 per learner and much more again when the learnership is successfully completed. KPMG makes its profit from subscriptions to the app, he concludes.
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