Corporate Training |

At CH Academy we offer corporate training in the form of learnerships and apprenticeships for multiple employees across multiple companies. This offering has enabled us, together with SETA organisations and other private companies to contribute towards skills development and job creation. The desperate need for training in South Africa, and the government’s progressiveness about promoting training courses has propelled us to be key players in this field. There are many benefits that companies can gain by placing their employees through these learnerships, but few take advantage of them. Section 12H of the Income Tax Act 58 of 1962 provides additional deductions to employers for qualifying learnership agreements. These additional deductions are intended as an incentive for employers to train employees in a regulated environment in order to encourage skills development and job creation. Corporate Training contracts qualifying for these deductions are learnership agreements and apprenticeships registered with a SETA. These additional deductions consist of an annual allowance and a completion allowance. Below is an example of what your company can gain from the annual allowance and completion allowance. 

Assessment Allowance

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

End of 12-month learnership = R40 000 * 27% (corporate tax) = R10 800

Completion Allowance

Once certificate is issued = R40 000 * 27% (Corporate tax) = R10 800

Total tax write-off on tax bill = R21 600 per learner

Corporate Training Benefits to Your Company

Your company can apply for tax incentives offered by SARS as presented in the example above. The tax benefits vary and increase for training employees with disabilities. Corporate Training can also benefit your company’s BBBEE status. This will allow you to position yourselves competitively in whichever industry you participate in. It is also a commitment by your company to social responsibility and a means of demonstrating its contribution to the development of a more inclusive and equitable economy.

Additional benefits for company:
  • Learnerships give greater credibility to the qualifications as your company has the assurance that the learners can demonstrate not only theoretical competence but practical competence as well.
  • Learnership graduates tend to possess skills that make them work more independently, need less supervision and possess enhanced problem-solving capabilities.
  • Learnership graduates have a lower probability of leaving a company that invests in their professional and personal development
  • Contributes to building a pool of skilled employees, where employers may elect particular employees who possess the required skill.
  • Provides highly productive employees who have an arsenal of skills at their disposal.
  • Enhances the organisations competitiveness as one has more skills labourers.
  • Increases investment opportunities as investors have more interest in a highly skilled and competent organization.
Corporate Training Benefits to Your Employees
  • Better employment opportunities after completion of learnership.
  • Fixed-term employment contract for the duration of the learnership.
  • Learnerships improve job performance so employees are able to competently undertake tasks relevant to the job.
  • Acquisition of a nationally recognized qualification that is relevant to the specific sector. 
  • To learn more, you can read the SARS breakdown of Section 12(H) of the Income Tax Act 58 of 1962 here.

 To learn more, you can read the SARS breakdown of Section 12(H) of the Income Tax Act 58 of 1962 here.

×