Page 606 - Juta's Indirect Tax

IN 10 (2) SKILLS DEVELOPMENT LEVIES ACT IN 10 (2)
A PBO that carries on more than one approved PBA, some of which are qualifying PBAs as well as other PBAs not listed in section 4(c)(i) of the SDL Act, will not qualify for the exemption from the payment of SDL under section 4(c) (i) of the SDL Act.
Similarly, a PBO that provides funds to PBOs that carry on one or more approved PBAs, some of which are qualifying PBAs as well as other PBAs not listed in section 4(c)(i) of the SDL Act, will not qualify for the exemption from the payment of SDL under section 4(c)(ii) of the SDL Act.
6. Application and administration of the skills development levy exemption
The Tax Exemption Unit (TEU) is a dedicated of ce within SARS which deals on behalf of the Commissioner with all applications by organisations seeking approval as PBOs. The TEU is also responsible for considering whether a PBO quali es for the exemption from the payment of SDL under section 4(c) of the SDL Act. The TEU will, by letter, inform the organisation applying for PBO approval whether it has been approved as a PBO and whether it quali es for the exemption from the payment of SDL under section 4(c) of the SDL Act. If at any time subsequent to the noti cation issued by the TEU con rming exemption from the payment of SDL the PBO no longer solely carries on the qualifying PBAs or no longer solely provides funds to other PBOs solely carrying on the qualifying PBAs, the PBO will lose the exemption under section 4(c) of the SDL Act. See Annexure B for the contact details of the TEU.
7. Conclusion
A PBO may qualify for exemption from the payment of SDL under section 4(c) of the SDL Act, provided certain requirements are met.
Legal and Policy Division
SOUTH AFRICAN REVENUE SERVICE Date of 1st issue : 24 March 20036
Annexure A – Public bene t activities contemplated in paragraphs 1, 2 (a), (b), (c) and (d) and 5 of Part I of the Ninth Schedule
1.
(a) (b) (c)
(d) (e) (f) (g)
(h) (i)
(j) (k) (l) (m) (n)
(o) (p)
(q)
NINTH SCHEDULE
PUBLIC BENEFIT ACTIVITIES (Section 30)
PART I
WELFARE AND HUMANITARIAN
The care or counseling of, or the provision of education programmes relating to, abandoned, abused, neglected, orphaned or homeless children.
The care or counseling of poor and needy persons where more than 90 per cent of those persons to whom the care or counseling are provided are over the age of 60.
The care or counseling of, or the provision of education programmes relating to, physically or mentally abused and traumatized persons.
The provision of disaster relief.
The rescue or care of persons in distress.
The provision of poverty relief.
Rehabilitative care or counseling or education of prisoners, former prisoners and convicted offenders and persons awaiting trial.
The rehabilitation, care or counseling of persons addicted to a dependence-forming substance or the provision of preventative and education programmes regarding addiction to dependence-forming substances.
Con ict resolution, the promotion of reconciliation, mutual respect and tolerance between the various peoples of South Africa.
The promotion or advocacy of human rights and democracy.
The protection of the safety of the general public.
The promotion or protection of family stability.
The provision of legal services for poor and needy persons.
The provision of facilities for the protection and care of children under school-going age of poor and needy parents.
The promotion or protection of the rights and interests of, and the care of, asylum seekers and refugees. Community development for poor and needy persons and anti-poverty initiatives, including—
(i) the promotion of community-based projects relating to self-help, empowerment, capacity building, skills development or anti-poverty;
(ii) the provision of training, support or assistance to community-based projects contemplated in item (i); or
(iii) the provision of training, support or assistance to emerging micro enterprises to improve capacity to start and manage businesses, which may include the granting of loans on such conditions as may be prescribed
by the Minister by way of regulation.
The promotion of access to media and a free press.7
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Juta’s IndIrect tax 2016