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.

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.

Keep Reading

How to Activate Tax Types on eFiling

How to Activate Tax Types on eFiling

This comprehensive guide navigates through the intricacies of tax types, explaining how to activate them on the eFiling platform

How to File a 2024 Tax Return on eFiling

How to File a 2024 Tax Return on eFiling

This post will walk you through the procedures needed to file your tax return for 2024 electronically. Let's dive in!

SARS Supporting Documents For A Tax Refund

SARS Supporting Documents For A Tax Refund

Today, we are unpacking everything around SARS supporting documents that you should know

SARS Toll-Free Number To Dial For My Tax Number

SARS Toll-Free Number To Dial For My Tax Number

Obtaining your tax number online is a convenient method the South African Revenue Service (SARS) provides.

How to Declare Foreign Income On Tax Return in South Africa

How to Declare Foreign Income On Tax Return in South Africa

How to Declare Foreign Income On Tax Return. Read on to learn how you declare foreign income from the SARS tax return. 

What Expenses Are Tax Deductible In South Africa?

What Expenses Are Tax Deductible In South Africa?

What expenses are tax deductible in South Afric. Read on to learn the expenses that are tax deductible in South Africa.   

How to Register For VAT SARS

How to Register For VAT SARS

Learn how to register for VAT SARS through eFiling. Get a step-by-step guide to activate your VAT profile and submit returns on eFiling

How to Unlock SARS eFiling portal

How to Unlock SARS eFiling portal

This comprehensive guide will teach you how to unlock SARS efiling, reset, and activate your SARS eFiling profile

What is SARS Income Tax Verification?

What is SARS Income Tax Verification?

What is SARS Income Tax Verification? Let us give you more details on SARS tax verification and how to verify your SARS account. 

What Happens to Your South African Taxes When You Die?

What Happens to Your South African Taxes When You Die?

This guide delves into the intricacies of what unfolds in the realm of taxes when one passes away in South Africa

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 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.

What is a CEB01?

What is a CEB01?

However, a CEB01 must be paid by the due date specified on the form - usually the last business day of the month following the assessment month

How to Appeal Against SARS Penalties

How to Appeal Against SARS Penalties

Whether you're a business owner or an individual taxpayer, this guide can increase your chances of success in appealing against SARS penalties.  

Where to Get A Medical Scheme Tax Certificate?

Where to Get A Medical Scheme Tax Certificate?

Here’s everything you need to know about medical scheme tax certificates, which are a critical part of proving your medical aid expenditure