The B-BBEE Commission has communicated its position as regards to how the Skills Development Expenditure target must be calculated in light of the 4 months Skills Development Levy payment holiday. The communication is in the form of a response to the Association of B-BBEE Professionals and reads as follows:
“The 6% target for skills development is based on leviable amount. The term leviable amount is defined in the Skills Development Levies Act as 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 purposes of determining the employer’s ability for any employees tax in terms of that Schedule, whether or not such employer is liable to deduct or withhold such employees tax.
Therefore the total remuneration amount must be used to determine the skills development levy. Further, the Income Tax Act has outlined expenses that must be excluded when determining leviable amount.
The skills development leviable amount is based on payroll and for the full measurement period.
The SDL payment holiday by SARS does not have a bearing on the skills development target because the payment holiday is a relief measure because of the COVID-19 pursuant to the National Disaster Management Regulations issued by government from time to time. This does not alter the requirements for B-BBEE implementation.”
