Do Retirement Annuity deductions reduce the SDL remuneration calculation by the RA amount?
Important:
This answer is based on tax law for the tax year ending 28 February 2020.
Answer:
In terms of section 3(4) the Skills Development Levies Act, 1999, but subject to subsection (5), the leviable amount means the total amount of remuneration, paid or payable, or deemed to be paid or payable by an employer to its employees during any month, as determined in accordance with the provisions of the Fourth Schedule to the Income Tax Act for the purposes of determining the employer's liability for any employees' tax in terms of that Schedule, whether or not such employer is liable to deduct or withhold such employees' tax.
The section 11(k), of the Income Tax Act, deduction is taken into account for purposes of determining the ‘balance of remuneration’. It allows for the contributions to be deducted from remuneration. As the same amount, i.e. the actual remuneration, is also used for purposes of the levy, it would be the amount before the contributions to the fund is taken into account.