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Vocational Education & Training Levy
Gerda Brand
Director, Taxation Services
15 April 2014
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©2014 Deloitte Touche Limited. All rights reserved. VET LEVY - 15 April 2014 2
Vocational Education and Training levy (“VET Levy”)
Deloitte screen small Jan 2010
©2014 Deloitte Touche Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
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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of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
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’ 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
Deloitte screen small Jan 2010
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of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
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’ 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
VET LEVY - 15 April 2014 5
Deloitte screen small Jan 2010
©2014 Deloitte Touche Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
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’ VET levy: monthly remittance form/ information
VET LEVY - 15 April 2014 6
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
Deloitte screen small Jan 2010
©2014 Deloitte Touche Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
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’ 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;
VET LEVY - 15 April 2014 7
Deloitte screen small Jan 2010
©2014 Deloitte Touche Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
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’ 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)
VET LEVY - 15 April 2014 8
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of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
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’ 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?
VET LEVY - 15 April 2014 9
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©2014 Deloitte Touche Limited. All rights reserved. VET LEVY - 15 April 2014 10
FAQ
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of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
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’ FAQ
Q: Government is exempt from the VET Levy – what about SOEs?
A: SOEs are not exempt from VET levy.
VET LEVY - 15 April 2014 11
Deloitte screen small Jan 2010
©2014 Deloitte Touche Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
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’ FAQ
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.
VET LEVY - 15 April 2014 12
Deloitte screen small Jan 2010
©2014 Deloitte Touche Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
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’ FAQ
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
VET LEVY - 15 April 2014 13
Deloitte screen small Jan 2010
©2014 Deloitte Touche Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
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’ FAQ
Q: Do you register your employees for the training levy?
A: No, only applicable to employers
VET LEVY - 15 April 2014 14
Deloitte screen small Jan 2010
©2014 Deloitte Touche Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
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’ 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
VET LEVY - 15 April 2014 15
Deloitte screen small Jan 2010
©2014 Deloitte Touche Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
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’ FAQ (cont.)
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.
VET LEVY - 15 April 2014 16
Deloitte screen small Jan 2010
©2014 Deloitte Touche Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
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’ FAQ (cont.)
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
VET LEVY - 15 April 2014 17
Deloitte screen small Jan 2010
©2014 Deloitte Touche Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
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’ FAQ (cont.)
Q: How do I calculate/ determine the value of payments made in kind?
A: This will be left to the employer’s to calculate
VET LEVY - 15 April 2014 18
Deloitte screen small Jan 2010
©2014 Deloitte Touche Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
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’ FAQ (cont.)
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.
VET LEVY - 15 April 2014 19
Deloitte screen small Jan 2010
©2014 Deloitte Touche Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
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’ FAQ (cont.)
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.
VET LEVY - 15 April 2014 20
Deloitte screen small Jan 2010
©2014 Deloitte Touche Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
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’ FAQ (cont.)
Q: If there is uncertainty whether a person is an independent contractor or
employee, can I obtain a directive from the NTA?
A: Yes
VET LEVY - 15 April 2014 21
Deloitte screen small Jan 2010
©2014 Deloitte Touche Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
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’ FAQ (cont.)
Q: Are pension fund and medical contributions made by the employer
included in “remuneration”?
A: Yes
VET LEVY - 15 April 2014 22
Deloitte screen small Jan 2010
©2014 Deloitte Touche Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
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’ FAQ (cont.)
Q: Are social security contributions made by the employer included in
“remuneration”?
A: Yes
VET LEVY - 15 April 2014 23
Deloitte screen small Jan 2010
©2014 Deloitte Touche Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
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’ FAQ (cont.)
Q: Do you include allowances (e.g. housing and travelling allowances) in
“remuneration”.
A: Yes, all benefits granted to employees.
VET LEVY - 15 April 2014 24
Deloitte screen small Jan 2010
©2014 Deloitte Touche Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
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’ FAQ (cont.)
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
VET LEVY - 15 April 2014 25
Deloitte screen small Jan 2010
©2014 Deloitte Touche Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
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’ FAQ (cont.)
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
VET LEVY - 15 April 2014 26
Deloitte screen small Jan 2010
©2014 Deloitte Touche Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
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’ FAQ (cont.)
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
VET LEVY - 15 April 2014 27
Deloitte screen small Jan 2010
©2014 Deloitte Touche Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
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’ FAQ (cont.)
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.
VET LEVY - 15 April 2014 28
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©2014 Deloitte Touche Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
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’ FAQ (cont.)
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.
VET LEVY - 15 April 2014 29
Deloitte screen small Jan 2010
©2014 Deloitte Touche Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
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’ FAQ (cont.)
Q: Can the credit be off-set against levy liabilities for the next financial year?
A: No
VET LEVY - 15 April 2014 30
Deloitte screen small Jan 2010
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of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
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’ FAQ (cont.)
Q: Is the training levy deductible for income tax purposes?
A: Yes, the training levy is deductible for income tax purposes.
VET LEVY - 15 April 2014 31
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Questions
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