Hiring our first intern through the YES4Youth or SETA learnership programme, how do the tax incentives work?
We're a 9-person digital agency in Cape Town and want to take on two junior design and marketing interns for 12 months. How do the Employment Tax Incentive (ETI) and Section 12H learnership allowances work in practice for a small business?
◆ 83asked 23 Sept1 answer
✓ Accepted by the asker
23 Sept@kirsten_umhlanga The Employment Tax Incentive (ETI) is the easiest win and works immediately on your monthly EMP201: for qualifying first-time employees aged 18 to 29 earning between R2,000 and R6,500/month (adjusted pro-rata), you reduce the PAYE you pay over to SARS every month by up to R1,500 per intern in their first 12 months! If you also register them on a formal SETA-accredited NQF learnership agreement, your company can claim the Section 12H corporate income tax deduction on commencement AND completion. Also look at @trustedinterns or @jobvinefreelance for vetted Cape Town graduates.
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