You are an employer and want to find out if you are exempt from paying SDL.
You, the employer, will still need to register for SDL, regardless of whether you are exempt from paying SDL, when your total salary expense for the next 12 months are expected to exceed R500,000.
Employers that are exempt from paying SDL are:
- Any public benefit organisation (PBO), exempt from paying Income Tax in terms of Section 10(1) (cN) of the Income Tax Act No.58 of 1962, which only carries on certain welfare, humanitarian, health care, religion, belief or philosophy public benefit activities or only provides funds to a PBO and to whom a letter of exemption has been issued by the Tax Exemption Unit (TEU).
- Any public service employer in the national or provincial sphere of Government.
- Any national or provincial public entity, if 80% or more of its expenditure is paid directly or indirectly from funds voted by Parliament.
- Any municipality to which the Minister of Labour issues a certificate of exemption.
Follow the link to find out how to register for SDL.
More on when you are required to register for PAYE, go here.
Please note that this is only a general guide, and SARS may at any time change the exemption requirements. It is therefore advisable to refer to the SARS website for any changes or to consult a tax practitioner.