Regulations > Levies and Related Issues

Annexure A

Skills Development Levies Act, 1999

Preamble to Criteria for Exemption

The core function of Municipalities is that of rendering a service to communities, and hence does not have a profit orientation. The provision of basic services is regarded as a basic human right in the country and an intrinsic obligation of Local Government. The prime source of income of Municipalities is through payment by communities for services such as water, sanitation etc., as well as through taxes on land and property.

In many areas, especially the rural areas, the tax base is so poor that people simply cannot afford to pay for services rendered. This Regulation provides for exemption from Levy Payment of Municipalities who fulfill specific criteria and who provide substantial evidence of their inability to pay the levy.

Note: The final decision to grant or refuse exemption rests with the Minister of Labour (or person delegated to act in that capacity)

Skills Development Levies Act, 1999

Application for Exemption from Paying Levy

(Municipalities only)

Details of Municipality seeking exemption:

Name:

Address:

SETA Registration No:

Year for which Exemption is requested

Declaration:

I hereby declare that the information contained in this application, to the best of my knowledge and belief, is correct.

Signed:

Position:

Date:

For office use only (SETA/Delegated Subcommittee/Executive Committee) Application Recommended / Rejected for Approval
Processed by:	Position:	Date:
Approval Recommended (Y/N)

Signed:	Position:	Date:
Submitted to Department of Labour for Final Approval:
Signed:	Position:	Date:

Notes:

•	The information requested is required in order to decide if the exemption requested should be granted

•	Please reply to all question

•	All supporting documentation requested must be submitted with this Application for Exemption

Checklist: - Evidence to support Application for Exemption

The following information must be supplied IN FULL when applying for an exemption. If you are unable to supply any information required you must submit written reason for non-submission.

INCOME

1.1 Rates Income:

% Residential	%
% Commercial/Industrial	%

Tariff Income:

% Residential	%
% Commercial/Industrial	%

1.2 State Rates and Tariff Increases / Decrease in past 5 years

Year	*	*	*	*	*
Rates	% In/De	*In/De	*In/De	%In/De	%In/De
Tariffs	% In/De	% In/De	% In/De	% In/De	% In/De

*Please Specify exact Year

1.3 Please detail any Provincial or Government Grants received: (Full detail)

1	AMOUNT	DETAIL
	R

2	AMOUNT	DETAIL
	R

3	AMOUNT	DETAIL
	R

(Should there be more please detail as above on a separate sheet)

1.4 Please give detail of any other significant Income received:

......................................................................................................................................

DEBTORS

2.1	Balance outstanding in month before this application

2.2	State the % debtors that pay their monthly accounts regularly	%

2.3	Show as a % the amount of money you receive as compared to the amount that you charge out each month	%

2.4	You are required to inform of your debt collection policy. This is to be a detailed written report and must be attached to this return. (Mark this 2.4)

2.5	To what extent is your debt collection policy implemented. We require a detailed written submission attached to this return. (Mark this 2.5)

CREDITORS

3.1 Balance outstanding in month before this application

3.2 How long has this money been outstanding

Arrears

Months

3.3 Please state in what respect this money is outstanding (water, electricity, etc.)

......................................................................................................................................

BANK BALANCE

4.1	State your bank balance at the end of the month before this application

4.2	Attach a certified copy of the bank statement for the previous three months showing the above balance. (Mark this 4.2)

FINANCIAL STATEMENTS

5.1 Attach a copy of your latest balance sheet. (Mark this 5.1)

5.2 Attach copies of your 2 previous year balance sheets. (Mark this 5.2 & 5.3)

BUDGET

6.1	State amount budgeted for salaries in current budget

6.2	State % increase budgeted for in the current budget over the budget for previous year

6.3	As you are applying for a levy exemption please state the amount you will be short to meet the full levy settlement

6.4	Attach a copy of your current budget. (Mark this 6.4)

6.5	Attach copies of your budgets for the two previous financial years. (Mark these 6.5 & 6.6)

PERSONNEL

7.1	State the number of full-time personnel in your employment. (Attach salary structure)

(Mark 7.1)

7.2	State the number of part-time or contract personnel in your employment

(Attach salary structure) (Mark 7.2)

7.3	Detail the part-time personnel by level and designation

......................................................................................................................................

7.4

State the number of vacant posts

and their designation:

......................................................................................................................................

7.5 State the wage budget as a % of total budgeted expenditure:

7.6 State the wage budget as a % of your operational budget:

7.7	State the % wage and salary increases granted to your staff for the past 3 years:

*	*	*
%	%	%

* Please specify year

COUNCILLOR ALLOWANCES

8.1	Are your councillors remunerated in terms of prescribed legislation:

YES

8.2	If "NO" give full detail on separate sheet. (Mark this 8.2)

8.3	Detail your councillor allowances for the past 3 years:

	*	*	*
Mayor	R	R	R
Deputy Councillor	R	R	R
Exco Chair	R	R	R

* Please Specify Year

8.4	State your councillor allowances as a % of your expenditure budget

8.5	State any other allowances and/or benefits received:

......................................................................................................................................

Skills Development Levies Act, 1999 (Act No. 9 of 1999)

Regulations

Regulations regarding Levies and Related issues

Annexure A