How To Register To Pay SDL

By Enk Kabng •  Updated: 12/03/24 •  5 min read

Skill Development Levy (SDL) is an important tax levied on South African employers to contribute to developing skills in the country. If you are an employer with a payroll of over R500,000 per annum, it is crucial that you understand the requirements and process of registering for SDL.

- ADVERTISEMENT -

In this post, you will be guided through the step-by-step process of registering for SDL in South Africa, helping you ensure that you comply with the regulations set by the South African Revenue Service (SARS). From determining your eligibility to submitting the relevant forms and making payments, I’ve got you covered.

By paying SDL, you not only fulfil your legal obligation but also contribute to the growth and development of the country’s future workforce. So, let’s dive in and take the first step towards contributing to the development of skills in South Africa.

How To Register To Pay SDL?

Registering for SDL is a breeze, as it requires just a few simple steps that can be accomplished in no time. Suppose an employer is liable to pay SDL; the employer must first register with SARS and determine the jurisdiction of the Skills Education and Training Authority (SETA) within which they should be classified. As per legal obligation, a company that becomes an employer must register with SARS within 21 working days unless none of its employees is subject to normal tax payment.

To register for SDL, you can follow these steps:

Deactivating the account can only be done in person at a SARS branch and cannot be done through eFiling.

Exemptions From Paying The Skill Development Levy (SDL)

Employers who are exempt from paying the Skill Development Levy (SDL) include:

Can I Voluntarily Register For SDL?

In South Africa, employers are legally mandated to register for the Skill Development Levy (SDL) if they meet the specified criteria, such as having an annual payroll of over R500,000 and employing at least four employees. This means that registration is not optional but a requirement. The funds collected through SDL are used to support skills development programs and initiatives to enhance the knowledge and abilities of the South African workforce.

When Must I Register For SDL?

If you’re an employer in South Africa and expect your employees’ total salaries to exceed R500,000 in the next 12 months, it’s time to start thinking about registering for the Skill Development Levy (SDL).

The law requires employers to register for SDL once they meet this financial threshold, as it’s an important step towards ensuring the skills and knowledge of South African workers are continuously developed and improved. By registering for SDL, you’ll be doing your part to support the country’s workforce and help build a better future for everyone. So, make sure to take note of this obligation and take the necessary steps to register as soon as possible.

How Do I Get A SDL Number?

You must register with the South African SARS to obtain a Skill Development Levy (SDL) number. The registration process involves providing information about your company, including financial information, and meeting the eligibility criteria set by law. Once you have completed the registration process, SARS will assign you an SDL number, which will be on the company’s tax clearance certificate.

Is It Compulsory To Pay SDL?

Yes, it is compulsory for employers who have a payroll of over R500,000 per annum to pay the Skill Development Levy in South Africa.

How Do I Claim SDL Contributions?

To claim a portion of your Skill Development Levy (SDL) contributions, you need to submit an Annual Training Report (ATR) and a Workplace Skills Plan (WSP) to the relevant Seta before the 30th of April each year. This process enables you to reclaim up to 20% of your SDL payments, which will be dispersed to you by the SETA on a quarterly basis in the form of mandatory grants.

- ADVERTISEMENT -

Keep Reading

How to Change Portfolio Name on eFiling

How to Change Portfolio Name on eFiling

How do I change my portfolio name on eFiling? Here's how to change your portfolio name.

What Does It Mean If Your Tax Return Is Negative?

What Does It Mean If Your Tax Return Is Negative?

Discover what it means to have a negative tax return in South Africa, how to claim your refund and avoid common delays.

How to Update My SARS Details Online

How to Update My SARS Details Online

Learn how to update SARS details online, upload supporting documents, and change sensitive information on eFiling.

How to Submit A Request For Extension On eFiling

How to Submit A Request For Extension On eFiling

Today, we will walk you through how to submit a request for an extension on SARS eFiling so you never have to pay a penalty fee again for late filing.

How to Claim Medical Expenses From SARS

How to Claim Medical Expenses From SARS

In this article, we’ll discuss how to claim medical expenses on your tax return from SARS, including which medical expenses you can claim

How to Make Payment to SARS via EFT

How to Make Payment to SARS via EFT

This post will cover the procedure for paying SARS via EFT, the procedure for paying SARS via eFiling

How to Get an Override Code From SARS

How to Get an Override Code From SARS

How Do I Get an Override Code From SARS. Check out the measures you can take to get an override code from SARS.

How to Access SARS ITA34 Form?

How to Access SARS ITA34 Form?

How to Dispute SARS Efiling Assessment?

How to Dispute SARS Efiling Assessment?

This article explains everything you want to know about disputing SARS eFiling assessment. 

How to Request A SARS Statement Of Account on eFiling

How to Request A SARS Statement Of Account on eFiling

Learn how to request a SARS statement of account on eFiling in South Africa. Keep track of your tax payments and expenses with this easy guide.

How Can I Avoid Paying Tax in South Africa?

How Can I Avoid Paying Tax in South Africa?

How Can I Avoid Paying Tax in South Africa? Today we look at this thorny issue in more detail.

How to Reject the SARS Auto-Assessment

How to Reject the SARS Auto-Assessment

Today, we will look at the SARS auto-assessment in more detail, including how to reject it if you don’t agree with it

Stamp Duty – Everything You Need to Know

Stamp Duty – Everything You Need to Know

Is Compensation Taxable In South Africa?

Is Compensation Taxable In South Africa?

Learn about the compensation tax laws in South Africa. Understand your tax bracket, take advantage of exemptions and reliefs

How to Get SARS ITA34

How to Get SARS ITA34

How to Get SARS ITA34. Today we walk you through everything to do with your ITA34 and what you need to know.