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The learnership tax incentive in Section 12H of the Income Tax Act lets a South African employer claim an extra tax deduction — on top of the learner’s salary — for every employee placed on a registered, SETA-approved learnership. You claim an annual allowance for each year the agreement runs, and a one-off completion allowance when the learner qualifies. The result: the same headcount lowers your taxable income, earns B-BBEE skills-development points and delivers a trained, qualified staff member. This page explains how the allowance works, the amounts, who can claim, and where BOTI’s accredited learnerships fit.
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Training your staff?
BOTI is accredited by the QCTO (Quality Council for Trades and Occupations) as a skills development provider, and is a Level 1 B-BBEE (Broad-Based Black Economic Empowerment) contributor. Plan the training in your Workplace Skills Plan and count it towards your B-BBEE skills development score.
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BOTI is accredited by the QCTO (Quality Council for Trades and Occupations) as a skills development provider, and is a Level 1 B-BBEE (Broad-Based Black Economic Empowerment) contributor. Plan the training in your Workplace Skills Plan and count it towards your B-BBEE skills development score.
Get a quote for your team
Below you will also find the records you need to support a Section 12H learnership allowance claim, how the completion allowance works for agreements longer than 24 months, and how the allowance sits alongside the Employment Tax Incentive. Legacy SETA qualifications are being phased out, so before you register a learnership agreement, compare the replacement options among our QCTO occupational certificates.
Related: What Is FASSET? Meaning, Learnerships, Bursaries and Grants.
Related: FoodBev SETA.
This guide is written for South African employers developing their own people — HR and L&D leads, business owners, finance managers, B-BBEE/transformation managers and payroll teams — not for individual learners or job-seekers.
The business problem the learnership tax incentive solves
Most South African businesses already carry two skills costs they cannot avoid. The first is the Skills Development Levy (SDL) at 1% of payroll[1], paid monthly to SARS. The second is pressure to score on the skills-development element of the B-BBEE scorecard (measured against 6% of the leviable amount[2] — not 6% of payroll). Training is going to happen regardless; the real question is whether it pays you back.
Section 12H answers that. Place an employee on a registered learnership and you deduct their salary as usual and claim a separate learnership allowance on top, directly reducing taxable income. Add the B-BBEE points the same learnership earns, and one programme delivers a tax saving, scorecard movement and a skilled employee at once. The condition: the learnership must be registered with the relevant SETA, lodged with SARS, run for the required period and be properly documented — which is exactly where an accredited training partner matters.
How the Section 12H allowance works
There are two distinct allowances, and you can claim both for the same learner over the life of the agreement:
- The annual allowance — claimed for each year of assessment a registered agreement is in force, apportioned pro-rata if the agreement runs for less than a full 12 months in a tax year.
- The completion allowance — claimed once, in the year the learner completes the learnership. For agreements longer than 24 months, it is multiplied by the number of consecutive 12-month periods the agreement ran.
Both are deductions from taxable income, not cash refunds, so the rand value depends on your tax position. You claim them in your annual income tax return, supported by the registered agreement and proof of completion. (The Employment Tax Incentive for qualifying young employees is a separate mechanism that can apply to the same learner — ask your tax adviser how the two interact.)
What the amounts are
Base amounts are set per learner, per year, with enhanced amounts for learners with a disability. As a general guide:
| Learner / NQF level | Annual allowance (per year) | Completion allowance |
|---|---|---|
| NQF level 1–6 learner | R40,000 | R40,000 |
| NQF level 7–10 learner | R20,000 | R20,000 |
| Learner with a disability (NQF 1–6) | R60,000 | R60,000 |
| Learner with a disability (NQF 7–10) | R50,000 | R50,000 |
So a learner on an NQF 1–6 learnership for a full year can attract a R40,000 annual allowance, plus a further R40,000 on completion — a meaningful deduction on top of the salary you were paying anyway. Amounts can change with legislation, so confirm current figures with your tax adviser.
The allowance applies to registered learnership agreements entered into before 1 April 2027 – the 2024 Budget extended it by three years[5]. Check the current SARS position before you sign a new agreement.
Want to model what a learnership could save you? Request a quote. Phone 011-882-8853 or use the BOTI booking page, and ask BOTI to help you size the learnership tax and B-BBEE benefit for your headcount.
Eligibility: when can you claim?
As general guidance, to claim the learnership tax incentive you generally need:
- A registered learnership (or recognised apprenticeship) registered with the relevant SETA.
- A signed, lodged agreement between employer, learner and accredited provider, registered before or during the year of assessment.
- An eligible learner — both new entrants and existing employees can qualify.
- Genuine training delivery — structured theory and workplace experience that actually takes place and is documented.
- Successful completion for the completion allowance to be claimed.
Keep the agreement, registration confirmation, attendance and assessment records, and completion certificate — the same evidence SARS or a B-BBEE verification agency will expect to see.
One timing note: Section 12H is a time-limited incentive with a sunset date in the Income Tax Act that has been extended more than once. Because the end date and amounts can change, treat multi-year planning as provisional and confirm the current position with your tax adviser.
What a BOTI learnership covers
A learnership combines structured theory with on-the-job workplace experience, leading to a full, registered qualification on the National Qualifications Framework. BOTI delivers accredited learnerships aligned to the relevant SETA, typically covering:
- A registered, NQF-aligned qualification — for example in business administration, generic management or a sector-specific field.
- Structured theoretical learning plus workplace experiential learning, logged against the qualification outcomes.
- Assessment and moderation through the relevant SETA or QCTO quality-assurance route.
- Recognition of Prior Learning (RPL) where existing employees already have relevant experience to credit.
- The signed agreement and documentation you need for your Section 12H claim, B-BBEE evidence and SETA reporting.
The output is a trained, qualified employee — plus the paperwork that turns the programme into a tax deduction and B-BBEE points.
Delivery formats and national reach
BOTI delivers learnerships throughout South Africa in the format that suits your operation:
- In-house / on-site — built around your premises and team, usually most cost-effective for a group.
- Blended and virtual — instructor-led online theory plus on-the-job workplace experience, efficient for distributed teams.
- Public and group intakes — for employers placing a cohort of learners together.
Reach spans Johannesburg, Cape Town, Durban and Pretoria, plus remote delivery nationwide.
Accreditation
BOTI is an accredited training provider — accredited by the Services SETA (12582) for legacy qualifications and by the QCTO as a Skills Development Provider. Our learnerships lead to registered, credit-bearing qualifications aligned to the relevant SETA or QCTO — exactly what the Section 12H incentive, your B-BBEE scorecard and your Workplace Skills Plan require. Note that Section 12H itself is a SARS tax incentive, not an accreditation; this article is general information, not tax advice.
Funding: Skills Development budget and B-BBEE points
A well-structured learnership works on three fronts at once. As general guidance only:
- Tax deduction. The Section 12H annual and completion allowances reduce taxable income, on top of deducting the learner’s salary.
- B-BBEE points. Learnerships score strongly on the skills-development element (measured against 6% of the leviable amount[2], not 6% of payroll), and absorbing learners afterwards can earn bonus points.
- Grant recovery. Reporting learnerships through your Workplace Skills Plan (WSP) and Annual Training Report (ATR) supports your mandatory grant (up to 20% of the SDL you pay)[3] and can support applications for discretionary grants from your SETA.
For tenders, note that under the PPPFA 2022 regulations bids are scored on “specific goals” — such as HDI ownership (race, gender and disability) and RDP objectives — not a generic B-BBEE level. The Public Procurement Act 28 of 2024 never came into force: on 17 September 2026 the Constitutional Court declared the whole Act invalid[4] because Parliament did not allow reasonable public participation. Public procurement still runs under the PFMA, the MFMA, the PPPFA and the Preferential Procurement Regulations, 2022, and Parliament may pass a new procurement law. This is general information, not financial, tax or legal advice — confirm specifics with your tax adviser, SETA or B-BBEE verification professional.
Why BOTI
BOTI is an accredited South African corporate training provider with 333 courses and a client base that includes Sasol, Glencore and the City of Johannesburg. We help employers structure learnerships so the training is real, the qualification registered, and the documentation supports your Section 12H claim and SETA reporting. Most clients pair this with related programmes:
- Increase your B-BBEE score with learnerships — how learnerships drive skills-development points.
- SETA learnerships — how registered, SETA-aligned learnerships work.
- Accredited RPL learnership courses — credit existing employee experience into a qualification.
- Skills Development Facilitator (SDF) training — to plan and report learnerships through your WSP and ATR.
- The full BOTI course range — accredited, skills-focused programmes for teams.
Frequently asked questions
What is the Section 12H learnership tax incentive? Section 12H of the Income Tax Act gives South African employers an additional tax deduction for each learner on a registered, SETA-approved learnership — an annual allowance for every year the agreement is in force and a completion allowance when the learner qualifies, both on top of the salary deduction. This is general information, not tax advice.
How much can we claim per learner under Section 12H? As a general guide, the standard annual allowance is R40,000 per learner per year for NQF levels 1–6 (R20,000 for NQF 7–10), with a matching completion allowance on finishing. Enhanced amounts apply for learners with a disability, and the annual allowance is apportioned for a part-year. Amounts can change — confirm current figures with your tax adviser.
Who qualifies for the learnership allowance? Employers with a learner on a learnership registered with the relevant SETA, under a signed agreement lodged with SARS, where genuine structured and workplace learning takes place. Both new recruits and existing employees can qualify. Keep the agreement, registration proof and completion records.
Does a learnership also help our B-BBEE scorecard? Yes. Learnerships score strongly on the skills-development element (measured against 6% of the leviable amount, not 6% of payroll), and absorbing learners afterwards can earn bonus points — so one learnership can deliver a tax deduction and scorecard points at once.
Can BOTI provide accredited learnerships for our staff? Yes. BOTI delivers SETA/QCTO-aligned learnerships leading to registered, credit-bearing qualifications, with the documentation you need for your Section 12H claim, B-BBEE evidence and SETA reporting. Delivery is in-house, blended or group intakes nationwide. Request a quote on 011-882-8853.
Request a quote
Turn unavoidable training spend into a tax deduction, scorecard points and qualified staff. Request a quote — phone 011-882-8853 or use the BOTI booking page, and ask BOTI to help you size the learnership tax and B-BBEE benefit for your team.
Want to claim the Section 12H learnership tax allowance? Explore BOTI’s accredited courses & learnerships or request a tailored training proposal — rated 4.8 from 770+ Google reviews.
More questions
What is the difference between the Section 12H annual allowance and the completion allowance?
The annual allowance is claimed for each year of assessment in which a registered learnership agreement is in force, and it is apportioned if the agreement runs for less than a full 12 months in that tax year. The completion allowance is claimed once, in the year the learner completes the learnership. For agreements longer than 24 months, it is multiplied by the number of consecutive 12-month periods the agreement ran.
Is the Section 12H allowance a cash refund?
No. Both the annual and the completion allowance are deductions from taxable income, claimed on top of the learner’s salary, so their rand value depends on your tax position. You claim them in your annual income tax return, supported by the registered agreement and proof of completion. This is general information, not tax advice; confirm your position with your tax adviser.
What records do I need to claim the s12H allowance?
Keep the signed learnership agreement and its registration confirmation, the attendance and assessment records, and the completion certificate. These are the same records SARS or a B-BBEE verification agency will expect to see. The training itself must be real: structured theory and workplace experience that actually take place and are documented, and the completion allowance depends on the learner completing successfully.
Can I claim Section 12H and the Employment Tax Incentive for the same learner?
The Employment Tax Incentive for qualifying young employees is a separate mechanism, and it can apply to the same learner who is on a Section 12H learnership. How the two interact depends on the learner and your payroll, so ask your tax adviser before you plan on claiming both. This is general information, not tax advice.
Does Section 12H have an end date?
Yes. Section 12H is a time-limited incentive with a sunset date in the Income Tax Act, and that date has been extended more than once. Because the end date and the allowance amounts can change, treat any multi-year learnership plan as provisional and confirm the current position with your tax adviser before you sign agreements.
The person who plans your learnerships and reports them in the Workplace Skills Plan and Annual Training Report is usually your skills development facilitator. BOTI’s Skills Development Facilitator (SDF) Training Course runs in-house at your premises, at our venue in Sunningdale, Johannesburg, or online, and delegates receive a BOTI certificate of attendance.
Sources
- Skills Development Levy – South African Revenue Service (SARS), 2026.
- Codes of Good Practice on B-BBEE: Code Series 300, Statement 300 – Skills Development (Government Gazette 42496) – Department of Trade and Industry, 31 May 2019.
- Mandatory Grants – Health and Welfare SETA (HWSETA), 2026.
- Godongwana notes Constitutional Court judgment on Public Procurement Act – SAnews (South African Government News Agency), 18 September 2026.
- Interpretation Note 20: Additional deduction for learnership agreements – South African Revenue Service (SARS).
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