When calculating the leviable amount of SDL on Directors Remuneration, the directors remuneration is included in terms of Section 3 (4) of the sdl act (As per step 1 of the SDL Guide), then the Directors Remuneration is exempt fromSDl in terms of section
Important:
This answer is based on tax law for the tax year ending 28 February 2020.
Answer:
Your conclusion is not correct. What section 3(5) of the Skills Development Levies Act, 1999 does is to exclude from leviable amount the amount which is deemed to be paid or payable by an employer which is a private company, to any person who is a director of that private company – this is in terms of paragraph 11C of the Fourth Schedule to the Income Tax Act. In a sense the levy therefore is only determined on the actual remuneration and not the deemed remuneration (according to the formula amount).