Page 205 - Juta's Indirect Tax

s 3 SKILLS DEVELOPMENT LEVIES ACT 9 OF 1999 s 5
month,asdeterminedinaccordancewiththeprovisionsof the Fourth Schedule to the Income Tax Act for the purposes of determining the employer’s liability for any employees’ tax in terms of that Schedule, whether or not such employer is liable to deduct or withhold such employees’ tax.*
(5) The amount of remuneration referred to in subsection (4) does not include any amount—
(a) paid or payable to any person contemplated in
paragraphs (c) and (d) of the de nition of ‘employee’ in paragraph 1 of the Fourth Schedule to the Income Tax Act, to whom a certi cate of exemption has been issued in terms of paragraph 2 (5) (a) of that Schedule;
(b) paid or payable to any person by way of any pension, superannuation allowance or retiring allowance;
(c) contemplated in paragraphs (a), (d), (e) or (eA) of
the de nition of ‘gross income’ in section 1 of the
Income Tax Act;
(d) payable to a learner in terms of a contract of
employment contemplated in section 18 (3) of the
Skills Development Act.
(e) which is in terms of paragraph 11C of the Fourth
Schedule to the Income Tax Act, 1962, deemed to be paid or payable by an employer which is a private company for purposes of that Act, to any person who is a director of that private company.
[Para. (e) added by s. 61 (1) of Act 30 of 2002.]
(6) Despite subsection (1), on the request of a SETA, the Minister may, in consultation with the Minister of Finance and by notice in the Gazette, determine from time to time a rate and basis for the calculation of a levy payable by employers within the jurisdiction or a part of the jurisdiction of a SETA, different from the rate and basis contemplated in subsection (1) (a) or (b), as the case
may be, but subject to subsection (7).
(7) The rate and basis determined in a notice in terms
of subsection (6) may not have the result that the amount of the levies collected by virtue of such notice is less than the amount of the levies which would have been collected, based on the rate and basis contemplated in subsection (1) (a) or (b), as the case may be.
(8) The Minister may, in consultation with the Minister of Finance, determine criteria for purposes of any determination contemplated in subsection (6).
(9) The notice referred to in subsection (6) must contain—
(a) the rate and basis for the calculation of the levy;
(b) the date on which the levy becomes payable;
(c) a description of the employers falling within the
jurisdiction of the SETA or part of the jurisdiction of
the SETA in respect of which the levy is payable;
(d) any other matter necessary to ensure the effective
collection of the levy.
4 Exemptions
The levy is not payable by—
(a) any public service employer in the national or
provincial sphere of government;
(b) any employer where section 3 (1) (a) or (b) applies
and during any month, there are reasonable grounds for believing that the total amount of remuneration, as determined in accordance with section 3 (4), paid or payable by that employer to all its employees during the following 12 month period will not exceed R500 000;
(c) any public bene t organisation contemplated in section 10 (1) (cN) of the Income Tax Act, which—
(i) solely carries on any public bene t activity contemplated in paragraphs 1, 2 (a), (b), (c) and (d) and 5 of Part I of the Ninth Schedule to that Act; or
(ii) solely provides funds to public bene t organi- sations contemplated in subparagraph (i); or
[Para. (c) substituted by s. 91 of Act 30 of 2000, by s. 62 of Act 30 of 2002 and by s. 196 of Act 45 of 2003.]
5 Registration for payment of levy
(1) When an employer is liable to pay the levy, that employer must—
(a) apply to the Commissioner in such manner as the
Commissioner may determine, to be registered as an employer for the purposes of the levy and indicate in such application the jurisdiction of the SETA within which that employer must be classi ed (if any); and
(b) if the employer is affected by the establishment or amendment of a SETA as contemplated in subsection (4), indicate to the Commissioner the jurisdiction of the SETA within which that employer must be classi ed.
(2) For the purposes of subsection (1), where an employer falls within the jurisdiction of more than one SETA, that employer must, having regard to—
(a) the composition of its workforce;
(b) the amount of remuneration paid or payable to the different categories of employees; and
(c) the training needs of the different categories of employees,
select one SETA within which it must be so classi ed for the purposes of this Act.
(3) A selection by an employer in terms of subsection (2) is binding on the employer, unless the Commissioner having regard to the factors contemplated in subsection (2) (a), (b) and (c) otherwise directs.
(4) If a SETA is established or its jurisdiction is amended after 1 April 2000, the Minister must, by notice in the Gazette—
(a) inform employers of any change in respect of which
SETA the levy is or becomes payable; and
(b) determine a date, more than 60 days after the date of the notice, from which employers will be affected by
that establishment or amendment of jurisdiction.
(5) An employer that falls within the jurisdiction of a SETA speci ed in a notice referred to in section 7 (1),
must—
(a) apply to the SETA in such manner as the SETA
determines, to be registered as an employer for the
purposes of the payment of the levy;
(b) within 21 days from the date of such notice, submit a
statement to the Commissioner con rming that such employer falls within the jurisdiction of that SETA and that payment of the levy will be made to that SETA.
Juta’s IndIrect tax 2016 197
[Para. (b) substituted by s. 24 (1) of Act 9 of 2005.]
* This means that the remuneration paid to employees below the Income Tax threshold must be incorporated into the
(d) (e)
any national or provincial public entity, if 80 per cent or more of its expenditure is defrayed directly or indirectly from funds voted by Parliament;
any municipality in respect of which a certi cate of exemption has been granted on such conditions and for such period as the Minister may prescribe by regulation, in consultation with the Minister of Finance and the Minister for Provincial and Local Government.
[Para. (e) added by s. 112 of Act 53 of 1999.]
remuneration for determining the leviable amount in this Act.
SKILLS DEVELOPMENT LEVIES ACT