PRESENTATION TO JOINT CHAMBER INDUCTION – 09 February 2017 SKILLS DEVELOPMENT LEVIES ACT, 1999. PRESENTED BY: FARHAD MOTALA

OUTLINE OF PRESENTATION - SDLA Administration, imposition and recovery of Skills Levy Recovery of levy by SETA General Provisions

Administration of the SDLA Administration of Act – Director-General (DG) Commissioner (SARS) – Administer the collection of levy payable DG may delegate any part of administration to CEO of a SETA in writing DG may at any time withdraw delegation in writing

Imposition of the Skills Levy Every Employer must pay a skills development levy from 1 April 2000 at a rate of 0.5% of total remuneration 1 April 2001 at a rate of 1% of total remuneration Total Remuneration defined in Income tax act Exemptions – Pensions, annuity allowance, retirement allowance, Unemployed Learner on contract of employment The Minister may by notice in Government Gazette impose a skills development levy on municipalities Minister may determine higher rate in consultation with minister of finance and publish in gazette

EXEMPTIONS AND REGISTRATION Public Service employer Employer below levy threshold – > R500,000 total remuneration over 12 month period Religious, charitable organisations and funds in terms of Section 10 of income tax act National or public entity were more than 80% of expenditure received from voted funds Employer must apply to commissioner for registration and indicate jurisdiction of applicable SETA If > 1 jurisdiction – employer selects SETA based on composition of workforce / amount payable to different SETAS and training needs of employees

Payment of Levy Employers pay over levy to SARS – monthly EMP 201 return Refunds must be effected by SARS commissioner Commissioner SARS / DG allocates to SETAS 2 months lag from employers paying to receipt of levies by SETA

Distribution of Levies 20% of levy Interest and Penalties – National Skills Fund (NSF) 80% of levy, Interest and Penalties – SETA S14 of Skills Development Act Distribution by SETA: – 20% (Mandatory Grant) – 49.5% (Discretionary Grant) – 10% (Administration) – 0.5% (QCTO)

Recovery of levies by SETA SETA may recover levy from employer – instituting action in magistrates court. DG may appoint inspector to assist SETA and ensure compliance with SDLA Inspector may enter premises with consent or warrant Employer has duty to respond to all requests of inspector Section 68 to 73 of BCEA applies to – Monitoring, enforcement and legal proceedings due to Non compliance

General provisions - Offences Failure of employer to register with SARS Failure to pay Levy Furnishing of false information Failure to submit, disclose, respond or give evidence Obstructs any official carrying out duties in terms of the Act

THANK YOU