Infringement Issues. Policy Release 116: Vocational ... · 8.00 cm 3.15 Inches 11.70 cm 4.61 inches...

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Vocational Education & Training Levy

Gerda Brand

Director, Taxation Services

15 April 2014


©2014 Deloitte Touche Limited. All rights reserved. VET LEVY - 15 April 2014 2

Vocational Education and Training levy (“VET Levy”)


©2014 Deloitte Touche Limited. All rights reserved. White markers indicate position

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To view Deloitte drawing guides:

1. Right-click on slide and select

’Grid and Guides...’

2. Check ’Display drawing guides

on screen’

3. Select ’OK’ Vocation Education and Training Act

Objectives of Act:

• Achieve effective and sustainable system of skills aligned to demands

• Establish and maintain a sustainable partnership between GRN, private sector

and civil society to resource provision of vocational education and training

Deloitte 3




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3. Select ’OK’ VET Levy: introduction

Effective – 1 April 2014

1% of total annual payroll, payable monthly

• N$ 1 000 000 p.a.

Registration Process

• Employers required to register

• On line, e-mail, by hand or by post

• Group registrations not possible

Each subsidiary should register separate

• Closing date – 27 February 2014

• Exemptions e.g. GRN, ecclesiastical, charitable and public educational

institutions

VET LEVY - 15 April 2014 4




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3. Select ’OK’ VET Levy: due date

Payment due by 20th of following month (due 20 May 2014)

Paid by EFT / cheque / cash on monthly levy submission form

10% penalties and interest on unpaid amount

Not a deduction from salary





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3. Select ’OK’ VET levy: monthly remittance form/ information


Financial Period:

Employer’s Name:

NTA Registration Number:

LEVY FOR THE MONTH

A Payroll

B

Levy Payable (Payroll times 1

percent)

C Interest

D Penalties

E Total Amount Payable (B+C+D)

Previous Amounts Over / Underpaid

Total Amount Payable




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3. Select ’OK’ VET levy: definitions

Employee means an individual, other than an independent contractor (not

defined), who –

(a) works for another person and who receives, or is entitled to receive,

remuneration for that work; or

(b) in any manner assists in carrying on or conducting the business of an employer.

Payroll means the total remuneration paid or payable by an employer to its

employees during any financial year.

Remuneration means the total value of all payments in money or in kind made or

owing to an employee arising from the employment of that employee;





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3. Select ’OK’ VET levy: application

Collected funds allocated:

15% administration of NTA

50% for Company training

35% for Key Priority Funding (e.g. cater for Strategic Scarce Skills)





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3. Select ’OK’ VET levy: grants/ claims

50% allocation grant to employers

Incentive to train employees

Meeting criteria to ensure training meets required quality standards

Employers eligible when:

No outstanding levies, penalties and interest

Submits evidence of the implementation of the training (related to vocational

training provided by a private vocational training provider accredited by the

Namibia Qualifications Authority or a state owned vocational training centre)

Supporting information/ evidence [including training records, attendance

sheets, certification, invoices/ receipts of payments made to service providers]

Grants assessed once a year

Claims to be submitted by 30 April (1st one due 30 April 2015)

Refund date?




FAQ




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3. Select ’OK’ FAQ

Q: Government is exempt from the VET Levy – what about SOEs?

A: SOEs are not exempt from VET levy.





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Q: In the case of institutions that are exempt from the training levy, do they

need to obtain approval from the NTA to be exempt?

A: If an institution is exempt in terms of the legislation no approval needs to

be obtained.





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Q: Is there an exemption for VET levies where I pay training levies to the

Petroleum Commission?

A: Exemption can only be granted by the Minister of Education. Employers

can apply and the Minister will consider the exemption application





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Q: Do you register your employees for the training levy?

A: No, only applicable to employers





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3. Select ’OK’ FAQ (cont.)

Q: If my annual payroll does not exceed N$ 1million, but could exceed the

threshold due to unexpected overtime/ additional bonus payments etc.

should I register?

A: Yes, employers are encouraged to register and pay. A reconciliation will be

done at the end of the year and if it transpires that the payroll is still below

the threshold, a refund will be made





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Q: In the previous scenario, what happens if I do not register?

A: If the employer does not register and it transpires that the payroll is in

excess of N$ 1 million, then penalties and interest on outstanding amounts

can be charged.





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Q: Do I pay 1% of the annual payroll over 12 installments OR do I calculate

1% of the monthly payroll? I.e. in a month where bonuses are paid the VET

levy will be higher than in non-bonus months?

A: Employers pay 1% of the monthly payroll. The monthly amounts will

definitely differ depending on bonuses / ad hoc payments





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Q: How do I calculate/ determine the value of payments made in kind?

A: This will be left to the employer’s to calculate





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Q: If I am a member of a close corporation / sole proprietor but also works for

the close corporation/ myself, am I an employee for VET levy purposes?

A: If there is employer relationship i.e. the person is remunerated by his/her

own CC or himself/herself the VET levy will apply.





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Q: Who will typically be regarded as “independent contractors”?

A: If there is service level agreement in place and the person is invoiced for

goods/ services there will be an independent contractor relationship.





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Q: If there is uncertainty whether a person is an independent contractor or

employee, can I obtain a directive from the NTA?

A: Yes





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Q: Are pension fund and medical contributions made by the employer

included in “remuneration”?

A: Yes





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Q: Are social security contributions made by the employer included in

“remuneration”?

A: Yes





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Q: Do you include allowances (e.g. housing and travelling allowances) in

“remuneration”.

A: Yes, all benefits granted to employees.





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Q: Will there be a list of accredited training programs be available on the NTA

website or elsewhere?

A: Yes. A list has been developed





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Q: May in-house training programs be included in the grant application?

A: Yes. For as long as they meet the definition of vocational related training





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Q: If there is uncertainty whether or not a program I run in-house/ support is

accredited can I obtain a directive from the NTA?

A: Yes. The training advisory division will provide guidance





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Q: What are the typical costs and evidence required for successful grant

submission?

A: Costs such as Training staff salaries or training provider fees, training

materials used in training, travel costs to training and assessment and

certification costs. Evidence to be submitted includes training records,

signed attendance sheets, invoices/receipts of payments made to service

provider and certificates. List is not exhaustive.





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Q: How long will the credit refund process take?

A: Timelines not yet finalized. It is a new system. Ideally as soon as possible

after the submission of evidence will the payments be made. Preparatory

work throughout implementation will be key.





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Q: Can the credit be off-set against levy liabilities for the next financial year?

A: No





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Q: Is the training levy deductible for income tax purposes?

A: Yes, the training levy is deductible for income tax purposes.




Questions

Infringement Issues. Policy Release 116: Vocational ... · 8.00 cm 3.15 Inches 11.70 cm 4.61 inches...

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