skill development levy

An employer is obliged to register for SDL purposes unless there are reasonable grounds for believing that the total leviable amount paid or payable by the employer to all its employees during the following 12 month period will not exceed R 500,000. This compulsory levy scheme was introduced with effect from 1 April 2000. The following employers are exempt for the payment of SDL but are not absolved from the obligation to register for SDL purposes:

• Any public service employer in the national or provincial sphere of government.
• Any national/provincial public entity if 80% or more of its expenditure is paid directly/indirectly from funds voted by parliament.
• Any public benefit organization exempt from the payment of income tax in terms of section 10(1)(cN), which solely carries on certain welfare, humanitarian, health care, religion, belief or philosophy public benefit activities or solely provides funds to such a public benefit organization and to whom a letter of exemption has been issued by the SARS tax exemption unit
• Any municipality in respect of which a certificate of exemption is issued by the minister of labour.