The task team assembled by South African Science and Technology Minister Naledi Pandor, following meetings with private sector players who suggested ways to improve on the Research and Development (R&D) Tax Incentive, have until March 2016 to complete their work.

Members of the government-industry task team officially began operating at the end of November last year and are tasked with finding ways to increase R&D and innovation in South Africa.

The country's Department of Science and Technology says the team is made up of seventeen representatives from R&D companies across various sectors, as well as consulting firms, relevant government departments and agencies, academia and the policy research community.

"Companies undertaking scientific and technological (research) in South Africa qualify for a tax deduction in terms of section 11D of the Income Tax Act (1962), as amended. The objective of the R&D Tax Incentive is to promote private sector R&D in South Africa," explained a statement from the department.

Companies must submit an application for pre-approval by the Minister of Science and Technology in order to qualify for the incentive which and has, to date, offered 150% deduction incurred on qualifying R&D expenditure since 2006.

According to the department, in November the task team deliberated over ways to simplify the process of accessing the incentive, the pre-approval process, clarifying the eligibility criteria and information requirements, as well as issues impacting on the eligibility of software development activities and the process of claiming the tax deduction.

The team also discussed options for improving access by small and medium enterprises (SMEs) and ways to improve the coherence of available incentives and to improve turnaround times.

"It was also noted that other jurisdictions that administer R&D tax incentives experience similar issues, and they review the effectiveness of their processes from time to time to ensure that the incentives remain effective in achieving their purpose."

The task team is expected to have completed its work and present recommendations to the Minister by March 2016.