A client has registered and paid SDL since their annual taxable salary amounted to over R500 000 for the year. The client is now scaling down and staff have left. The annual taxable salary now won't total over R500 000 for the year. Do I deregister him fo
Important:
This answer is based on tax law for the tax year ending 28 February 2017.
Answer:
Please note that it is the total amount of remuneration, as determined in accordance with section 3(4) of the Skills Development Levies Act, 1999, paid or payable by that employer to all its employees during the following 12-month period that must be less than R500 000.
If that is true, the employer doesn’t have to pay the levy and can be deregistered. If the employer is using the efiling system, it is done by de-activating SDL. The EMP201 would then not require the amount to be captured. One can, in the interim, of course capture a nil.