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Short, plain guides on skills development in South Africa.
Short, plain guides on skills development in South Africa.
These guides are general information, not tax or legal advice. Rules change, so confirm the current position with SARS, your SETA or your adviser.
Employers with an annual payroll of R500,000 or more pay the SDL, which is 1% of payroll. A share of it can come back to you as a mandatory grant if you submit your Workplace Skills Plan and Annual Training Report on time.
The mandatory grant is 20% of the SDL you pay. To qualify, your SDL must be paid up to date and your WSP and ATR must be submitted to your SETA by 30 April and approved.
The ETI reduces the PAYE you pay over when you employ qualifying young people, generally aged 18 to 29. The amount depends on what you pay them each month, so the salary you set matters. Our ROI Calculator shows the effect for your own numbers.
Section 12H lets an employer deduct an extra allowance for each registered learnership, in each year of the agreement and again on completion. The amount depends on the NQF level of the qualification. The allowance is currently set to run until 31 March 2027.
Donations to an approved public benefit organisation can be deducted, up to a limit of 10% of taxable income. You need the organisation's Section 18A certificate.
See how much you could recover