Implied tax subsidy rates on R&D expenditures in South Africa
South Africa: Implied tax subsidy rates on R&D expenditures was 0.12 Index in 2025. ◆ Volatile
Implied tax subsidy rates on R&D expenditures in South Africa, 2000–2025
Source: Organisation for Economic Co-operation and Development. Measured in Index.
Analysis
In 2025, implied tax subsidy rates on r&d expenditures in South Africa stood at 0.12 Index.
That represents a change of down 7.7% over ten years.
Over the whole period, implied tax subsidy rates on r&d expenditures in South Africa peaked at 0.13 Index in 2006 and was at its lowest, -0.01 Index, in 2000.
That places South Africa 20th out of 44 countries with data for 2025, putting it in the middle of the range.
The series is highly variable year to year, so single readings are best treated with caution.
Implied tax subsidy rates on R&D expenditures in South Africa, year by year
| Year | Index | Change |
|---|---|---|
| 2000 | -0.01 Index | — |
| 2001 | -0.01 Index | -0.0% |
| 2002 | -0.01 Index | -0.0% |
| 2003 | -0.01 Index | -0.0% |
| 2004 | 0 Index | -100.0% |
| 2005 | 0 Index | — |
| 2006 | 0.13 Index | — |
| 2007 | 0.13 Index | +0.0% |
| 2008 | 0.13 Index | +0.0% |
| 2009 | 0.13 Index | +0.0% |
| 2010 | 0.13 Index | +0.0% |
| 2011 | 0.13 Index | +0.0% |
| 2012 | 0.13 Index | +0.0% |
| 2013 | 0.13 Index | +0.0% |
| 2014 | 0.13 Index | +0.0% |
| 2015 | 0.13 Index | +0.0% |
| 2016 | 0.13 Index | +0.0% |
| 2017 | 0.13 Index | +0.0% |
| 2018 | 0.13 Index | +0.0% |
| 2019 | 0.13 Index | +0.0% |
| 2020 | 0.13 Index | +0.0% |
| 2021 | 0.13 Index | +0.0% |
| 2022 | 0.12 Index | -7.7% |
| 2023 | 0.12 Index | +0.0% |
| 2024 | 0.12 Index | +0.0% |
| 2025 | 0.12 Index | +0.0% |
Averages by decade
| Decade | Average | Lowest | Highest | Years |
|---|---|---|---|---|
| 2000s | 0.048 Index | -0.01 Index | 0.13 Index | 10 |
| 2010s | 0.13 Index | 0.13 Index | 0.13 Index | 10 |
| 2020s | 0.1233 Index | 0.12 Index | 0.13 Index | 6 |
Countries ranked near South Africa
More economy & growth data for South Africa
- Africa's Development Dynamics (AfDD) Table 04 - Annual real GDP 0.4836 Percent per annum (2029)
- Africa's Development Dynamics (AfDD) Table 02 - Annual real GDP 1.4 Percent per annum (2029)
- Gross capital formation (constant 2015 US$), annual growth rate 0.7139 % change on previous year (2025)
- Gross capital formation (constant 2015 US$), per unit of GDP 0.1196 constant 2015 US$ per US$ of GDP (2025)
- Gross capital formation (constant 2015 US$), per capita 789.38 constant 2015 US$ per person (2025)
- Imports of goods and services (current US$), annual growth rate 5.23 % change on previous year (2025)
- Imports of goods and services (current US$), per unit of GDP 0.295 current US$ per US$ of GDP (2025)
- Imports of goods and services (current US$), per capita 1,946 current US$ per person (2025)
- Imports of goods and services (current LCU), annual growth rate 2.7 % change on previous year (2025)
- Imports of goods and services (current LCU), per unit of GDP 5.28 current LCU per US$ of GDP (2025)
Frequently asked questions
- What is implied tax subsidy rates on r&d expenditures in South Africa?
- Implied tax subsidy rates on r&d expenditures in South Africa was 0.12 Index in 2025, according to Organisation for Economic Co-operation and Development.
- What is the highest implied tax subsidy rates on r&d expenditures recorded in South Africa?
- The highest recorded value was 0.13 Index in 2006.
- What is the lowest implied tax subsidy rates on r&d expenditures recorded in South Africa?
- The lowest recorded value was -0.01 Index in 2000.
- How does South Africa rank for implied tax subsidy rates on r&d expenditures?
- South Africa ranks 20th out of 44 countries with data for 2025.
- Is implied tax subsidy rates on r&d expenditures rising or falling in South Africa?
- Over the last ten years it is down 7.7%. The long-run trend across the full record is volatile.
- Where does this South Africa data come from?
- The figures come from Organisation for Economic Co-operation and Development, published as part of Implied tax subsidy rates on R&D expenditures. Statizoid updates them automatically from the source API.
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About this data
The OECD R&D Tax Incentives database presents OECD time-series indicators of implied tax subsidy rates on R&D expenditures by firm size and profitability scenario for OECD member countries and other major economies, drawing on data collected in the OECD R&D tax incentives surveys since 2007. Implied R&D tax subsidy rates are defined as 1 minus the B-Index, a measure of the before-tax income needed by a “representative” firm to break even on one additional monetary unit of R&D outlay (Warda, 2001; OECD, 2023). The more generous the tax provisions for R&D, the lower the before-tax breakeven economic return required by firms and the higher the implied marginal R&D tax subsidy. The OECD time-series estimates of implied R&D tax subsidy rates is based on headline tax credit and allowance rates. Due to limited historical data availability, the estimates are not adjusted for provisions that bound the tax benefits received by firms (e.g. ceilings, thresholds). They therefore provide an upper bound for the marginal tax subsidy implied by R&D tax relief measures at central government level across countries over time. OECD (2019) provides a practical guide to using the OECD R&D Tax Incentives database, describing the R&D tax incentive time series data and highlighting their potential for internationally comparative work through descriptive indicators and econometric analysis.