“Director-General” means the Director-General of Higher Education and Training;
[Definition of “Director-General” substituted by section 1(a) of Act 24 of 2010]
“Commissioner” definition of section 1 of SDL Act
“Commissioner” means the Commissioner for the South African Revenue Service appointed in terms of section 6 of the South African Revenue Service Act, 1997 (Act 34 of 1997), or the Acting Commissioner designated in terms of section 7 of that Act;
[Definition of “Commissioner” substituted by section 271 read with paragraph 148(a) of Schedule 1 of Act 28 of 2011]
“Approved body” definition of section 1 of SDL Act
“approved body” means the body approved by the Minister in terms of section 7(1)(b) to collect the levy on behalf of a SETA;
ARRANGMENT OF SECTIONS (SDL)
ARRANGEMENT OF SECTIONS
CHAPTER 1
ADMINISTRATION, IMPOSITION AND RECOVERY OF LEVY
Section 2 – Administration of Act
Section 3 – Imposition of levy
Section 5 – Registration for payment of levy
Section 6 – Payment of levy to Commissioner and refund
Section 7 – Payment of levy to SETA and refund
Section 8 – Distribution of levies paid to Commissioner
Section 9 – Distribution of levies paid to SETA
Section 11 – Interest on late payment
Section 12 – Penalties on default
Section 13 – Repealed
CHAPTER 2
RECOVERY OF LEVY BY SETA
Section 15 – Appointment of inspectors
Section 16 – Repealed
Section 17 – Repealed
Section 18 – Co-operation with inspectors
Section 19 – Undertakings and compliance orders
CHAPTER 3
GENERAL PROVISIONS
Section 20 – Repealed
Section 21 – Repealed
Section 23 – Amendment of Skills Development Act
Section 24 – Short title and commencement
Schedule – Amendment of Skills Development Act
CHAPTER 1
ADMINISTRATION, IMPOSITION AND RECOVERY OF LEVY
Citation (SDL)
SKILLS DEVELOPMENT LEVIES ACT NO. 9 OF 1999
(Assented to 14 April 1999)
[Commencement date: 1 September 1999]
(English text signed by the President)
as amended by
Tax Administration Laws Amendment Act 23 of 2015
Taxation Laws Amendment Act 15 of 2016
Tax Administration Laws Amendment Act 13 of 2017
Taxation Laws Amendment Act 17 of 2017
Tax Administration Laws Amendment Act 33 of 2019
Tax Administration Laws Amendment Act 24 of 2020
Latest 2025 Live Updates: UNDER CONSTRUCTION (PROJECTED COMPLETION 15 FEBRUARY 2025)!
Revenue Laws Second Amendment Act 44 of 2024
To report an issue, please contact us at service@hApp-e-tax.co.za
ACT
To provide for the imposition of a skills development levy; and for matters connected therewith.
Section 1 (SDL) – Definitions
1 Definitions
(1) In this Act, unless the context otherwise indicates—
Section 2 (SDL) – Administration of Act
2 Administration of Act
(1) Subject to subsection (2), the Director-General must administer this Act.
(2) The Commissioner must administer the provisions of the Act in so far as it relates to the collection of the levy payable to the Commissioner in terms of this Act, in accordance with the provisions of the Tax Administration Act.
[Subsection (2) substituted by section 271 read with paragraph 143(a) of Schedule 1 of Act 28 of 2011]
(2A) Administrative requirements and procedures for purposes of the performance of any duty, power or obligation or the exercise of any right in terms of this Act are, to the extent not regulated in this Act, regulated by the Tax Administration Act.
[Subsection (2A) inserted by section 271 read with paragraph 143(b) of Schedule 1 of Act 28 of 2011]
(3) The Director-General may delegate any part of the administration of this Act, contemplated in subsection (1), to the executive officer of a SETA.
(4) A delegation in terms of subsection (3)—
(a) is subject to the conditions the Director-General determines;
(b) must be in writing;
(c) does not prevent the Director-General from performing the part of the administration so delegated; and
(d) may at any time be withdrawn in writing.
Section 3 (SDL) – Imposition of levy
3 Imposition of levy
(1) Every employer must pay a skills development levy—
(a)
(i) from 1 April 2000, at a rate of 0,5 per cent of the leviable amount; and
(ii) from 1 April 2001, at a rate of one per cent of the leviable amount; or
(b) at such a rate as the Minister may announce in the national annual budget contemplated in section 27(1) of the Public Finance Management Act, 1993 (Act 1 of 1999), effective on a date mentioned in that Announcement.
(2) If the Minister makes the announcement contemplated in subsection (1)(b), that rate comes into effect on the date determined by the Minister in that announcement and continues to apply for a period of 12 months from that date subject to Parliament passing legislation giving effect to that announcement within that period of 12 months.
(3) For the purposes of subsections (1) and (2), but subject to subsection (4), the leviable amount means the total amount of remuneration, paid or payable, or deemed to be paid or payable, by an employer to its employees during any month, as determined in accordance with the provisions of 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.
(4) The amount of remuneration referred to in subsection (3) does not include any amount—
(a) paid or payable to any person contemplated in paragraphs (c) and (d) of the definition of “employee” in paragraph 1 of the Fourth Schedule to the Income Tax Act, to whom a certificate 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 paragraph (a), (d), (e) or (eA) of the definition 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.
(5) 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), but subject to subsection (7).
(6) The rate and basis determined in a notice in terms of subsection (5) 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).
(7) The Minister may, in consultation with the Minister of Finance, determine criteria for purposes of any determination contemplated in subsection (5).
(8) The notice referred to in subsection (5) 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; and
(d) any other matter necessary to ensure the effective collection of the levy.
[Section 3 amended by section 111 of Act 53 of 1999 and by section 61(1) of Act 30 of 2002 and substituted by section 88 of Act 15 of 2016 and by section 88(1) of Act 17 of 2017 deemed effective on 19 January, 2017]
Section 4 (SDL) – Exemptions
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;
[Paragraph (b) substituted by section 24(1) of Act 9 of 2005 effective on 1 August, 2005]
(c) any public benefit organisation contemplated in section 10(1)(cN) of the Income Tax Act, which—
(i) solely carries on any public benefit 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 benefit organisations contemplated in subparagraph (i); or
[Paragraph (c) substituted by section 91 of Act 30 of 2000, by section 62 of Act 30 of 2002 and by section 196 of Act 45 of 2003]
(d) 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;
(e) any municipality in respect of which a certificate 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.
[Paragraph (e) added by section 112 of Act 53 of 1999]
Section 5 (SDL) – Registration for payment of levy
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 classified (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 classified.
(1A) If the Director-General is satisfied that an employer has incorrectly indicated the jurisdiction of a SETA under subsection (1), the Director-General may direct that the employer be classified under the jurisdiction of the correct SETA.
[Subsection (1A) inserted by section 21(a) of Act 33 of 2019]
(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 classified for the purposes of this Act.
(3) A selection by an employer in terms of subsection (2) is binding on the employer, unless the Director-General having regard to the factors contemplated in subsection (2)(a), (b) and (c), otherwise directs.
[Subsection (3) substituted by section 21(b) of Act 33 of 2019]
(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 the SETA 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 specified 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 confirming that such employer falls within the jurisdiction of that SETA and that payment of the levy will be made to that SETA.
(6) Any employer that is exempt from the payment of the levy as contemplated in section 4(a), (c), (d) and (e), must register in terms of subsection (1).
[Subsection (6) substituted by section 92(1) of Act 30 of 2000 effective on 24 November, 1999]