Put it simply Skills Development Levy (SDL) is a 1% levy that is paid by employers that have a payroll larger than R500 000. This 1% that is paid is used to encourage training and development in South Africa.
GREAT NEWS – You can claim back between 20 – 69% of this amount by submitting a Workplace Skills Plan.
HOW… Get a Skills Development Facilitator and with the support of your company it is possible.
How much: The table below calculates the claim that a company can receive back annually. The specific payroll might not be mentioned but it does give you a good estimate.
Please note: The mandatory amount claimed back is 20%, anything above this amount is discretionary and depends on your WSP. Other factors that influence this % is your Annual Training Report (training that you have actually done) as well as your Employment Equity (who you trained).
This amount is paid back in quarterly instalments.
The key here is to employ a registered and professional Skills Development Facilitator.
*Skills Development Facilitators will either as a payment when submitting the WSP or a % or the levy claimed, or a combination of both.
The following employers are exempt from paying SDL—copied directly from (http://www.sars.gov.za/TaxTypes/SDL/Pages/default.aspx)
- Any public service employer in the national or provincial sphere of Government. (These employers must budget for an amount equal to the levies due for training and education of their employees).
- Any national or provincial public entity, if 80% or more of its expenditure is paid directly or indirectly from funds voted by Parliament. (These employers must budget for an amount equal to the due for training and education of their employees).
- Any public benefit organisation (PBO), exempt from paying Income Tax in terms of Section 10(1) (cN) of the Income Tax Act No.58 of 1962, which only carries on certain welfare, humanitarian, health care, religion, belief or philosophy public benefit activities or only provides funds to a PBO and to whom a letter of exemption has been issued by the Tax Exemption Unit (TEU).
- Any municipality to which a certificate of exemption is issued by the Minister of Labour.
- Any employer whose total remuneration subject to SDL (leviable amount) paid/due to all its employees over the next 12 month period won’t exceed R500 000. If this is the reason for exemption, these types of employers are not required to register to pay SDL.
You are welcome to read more on the SARS website.