Skills Development Levy REGISTRATION

SDL (Skills Development Levy) and is a compulsory tax paid by employers whose staff bill exceeds R500 000 per year. It is aimed at established businesses so fortunately start-ups do not have to register for SDL.

What documents and information do you need to register for SDL?
SARS requires the company name, registration number, income tax number and business description. A letter from your company bank confirming your banking details is also required.

You will also need to estimate the total amount of your payroll for the next 12 months as well as the estimated number of employees the payroll will be based on.

How is SDL calculated?
The amount is 1% of the total monthly salary bill paid each month to SARS. The total salary bill includes overtime payments, leave pay, bonuses, commissions and lumpsum payments.

When does SDL get paid to SARS?
SDL must be paid together within 7 days after the end of the month. If the last day for payment falls on a public holiday or weekend, the payment must be made on the last business day before the public holiday or weekend.

Is my Tax Registration Number also my SDL registration number?
No, Your Tax number is your income tax registration number and different from your SDL registration number and need to be applied for separately.