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Do you know the eight payments not subject to SDL?

by , 19 September 2013
You probably know that the Skills Development Levy (SDL) is a company contribution you must pay every month. This levy funds education and training through the Skills Education Training Authorities (SETAs). But did you know there are eight specific payments that aren't subject to SDL? Read on to find out what they are...

If you don't know the types of payments that aren't subject to SDL don't worry, the Practical Tax Loose Leaf Service has you covered.

The following eight payments aren't subject to SDL

#1: Any amount paid or payable to a labour broker who has an exemption certificate;

#2: Any pension, provident or retirement annuity fund payout, superannuation allowance or retiring allowance;

#3: Any annuity or living annuity;

#4: Any amount you pay for the termination, loss, cancellation or change of employment. For example, a retrenchment payout or an arbitration award;

#5: Any pension you pay to the dependents or nominee of an employee that's passed away;

#6: Remuneration you pay for a learnership agreement in terms of Section 18(3) of the Skills Development Act;

#7: Deemed director's remuneration in terms of paragraph 11C of the Fourth Schedule to the Income Tax Act; and

#8: Payments made to independent contractors.

Knowing the amounts that aren't subject to SDL will help ensure you comply with the Income Tax Act.

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