Pinetown Accountants - Tax Consultant and Accounting Services in Durban South Africa                                   

How the Skills Development Levy Helps You

Need an accountant to help you calculate your Skills Development Levy? PATC is able to assist with a wide range of employee tax requirements, including Skills Development Levy. The Skills Development Act was developed in order to improve the working skills of South Africans. This act enables the economy to grow, offering an improved life for all South Africans.

Currently, South Africa has a serious shortage of skilled staff. The Skills Development Levy (SDL) aims to address this through a special tax that aims to remunerate employees as they work. Your tax specialist will assist you in managing your company’s SDL obligation. SDL is determined as follows:

  • Directors' remuneration, on the same basis as PAYE, will be subject to the Skills Development Levy.
  • The Skills Development Levy is payable by employers at a rate of 1% of remuneration as from 1 April 2001 (previously 0.5%).
  • Employers paying annual remuneration of less than R500 000 are exempt from this levy as from 1 August 2005.
  • An Employer paying annual remuneration above R500 000 is obliged to register with SARS for SDL.
  • SDL is paid along with PAYE and UIF by the 7th of every month to SARS.


What are the benefits of the Skills Development Levy?

If your company promotes training and learning in the workplace and you pay your Skills Development Levy every month, you are entitled to the following benefits:

  • Skills development grants;
  • Substantial tax allowances when you implement Learnerships in your company.
For more information on SDL benefits and how to register, contact the professional accountants of Umhlanga or Pinetown today.