The Support Programme for Industrial Innovation intends to promote technology development in South Africa through the provision of financial assistance for the development of innovative, competitive products and/or processes.
The scheme intends to promote technology development through the provision of financial assistance for the development of new products and/or process. A new product is a product that has not been in the market before.
Basic principles
The Product Process Development Scheme provides financial assistance for small, very small and micro enterprises whose total assets (excluding fixed property) are below R5 million and a turnover of less than R13 million as well as total employees of below 50, as defined in the National Small Business Amendment Act of 2003 or any other Act replacing it.
QUALIFYING COSTS
Salary and labour costs
General
Only the costs of personnel directly involved in the project and contributing technical inputs are qualifying costs. Amounts claimed must not be out of line with the amount of such salaries or drawings prior to the date of application. Where there is inconsistency, a proper motivation must be provided, e.g. general salary increase or promotion, which should be to the satisfaction of Support Programme for Industrial Innovation.
Basis
Qualifying remuneration is based on the total annual salary package of each individual. This would normally be the amount contained in the person’s letter of appointment. Equipment such as desks, computers, telephones and office space are not included. The hourly salary rate is calculated by dividing the qualifying remuneration by 2016 working hours per annum. The maximum hourly rate which may be claimed is R800 per hour. Qualifying costs will also be determined for the project team based on the approved rate and hours approved for the project, supported by relevant payslips and other documentation.
Overtime
Overtime will only qualify if this is specifically paid and the maximum hourly rate will be the salary rate as calculated in terms of 7.2.2 above. No double or improved time will be allowed.
Management costs
Only the costs of executive or managerial personnel, including directors, who are directly involved in the project qualify and only to the extent that such personnel are contributing technical inputs. The maximum time allocated for this category may not exceed 80%.
Project management relates to the development process is regarded as a qualifying cost.
Shareholders, directors, members and owners
Personnel-related costs for such persons only qualify if the actual cash has been paid out to them or has been transferred to their loan account. This must be supported by an IT3 (a) and proof that this has been submitted to SARS. Proof required is an assessment and confirmation from SARS that payment of tax in relation with the income declared has been paid. As a guideline, the hourly rate of support will be determined after comparison with the amount paid.
Should you be interested in applying for the business grant, Dream Team Capital can assist you. Contact us today for professional assistance in streamlining your application for the Support Programme for Industrial Innovation grant.
