The Minister of Higher Education published Government Gazette 7498 (Notice No.67) effective 1 April 2021 which amends the following regarding the VET Levy :
- Definition of remuneration
Remuneration means remuneration as defined in Part I of Schedule of the Income Tax Act (and no longer refers to remuneration as defined in Chapter 1 of the Labour Act).
Therefore, from 1 April 2021, VET remuneration should be the same as PAYE remuneration.
- Exemption of employers from payment of levy
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Before GG 7498 (Before 1 April 2021) |
From GG7498 ( From 1 April 2021) |
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The following employers are exempted from payment of the levy - |
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· the State, · regional councils as defined in section 1 of the Regulation Councils Act, · charitable organisations, · public educational institutions and not for gain, and · faith based organisations The above apply whether or not supported wholly or partially by grants from public funds. |
· the State · regional councils as defined in section 1 of the Regulation Councils Act, · local authorities established by the Local Authorities Act, except those referred to in Part I of Schedule 1 of the Act, · employers whether or not supported wholly or partially by grants from public funds that meet the criteria for – - public educational institutions, - faith-based organisations, - charitable organisations, - private education and training institutions, - diplomatic and consular missions and offices of representatives or other states, - donor organisations and their agencies, - non-profit making voluntary organisations or non-government organisations, and - non-profit making non-voluntary organisations.
In order to qualify for the exemptions, the employers listed above must meet the criteria described in the Framework for Exemption of Employers from Payment of the Vocational Education and Training Levy set out in Annexure C. |
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An institution not listed above, may apply to the Minister for exemption from paying the levy. |
An institution or employer not mentioned above may apply in writing to the Minister for the exemption from paying the levy. |
- Payment of levy
- The levy must be paid and reflect in the National Training Fund bank account on or before the 20th day of each month following the month during which the remuneration is paid or becomes payable.
- Every payment of the levy must be accompanied by a completed monthly return form provided by the NTA and evidence of a monthly payroll report.
- If the employer is required to pay the levy and fails to submit a monthly return form,
the NTA is not satisfied with the information provided in the return form, or
the employer has failed to pay the levy,
the NTA may make a reasonable estimate, based on the information provided on Annexure B, of the amount of any levy payable and issue to the employer a notice of assessment for the unpaid amount, and in respect of the failure to submit the returns mentioned above, impose a penalty of N$250 on every late monthly return form.
- An employer to whom a notice of assessment is issued must pay the amount of the assessment concerned unless the employer has –
- after receiving the assessment submitted a monthly return form,
- given proof to the NTA that the submitted monthly return form is correct, and
- paid the levy in terms of the Act.
- An employer may submit an amended return form as follows –
- in respect of periods preceding the date of publication of the Notice in the Gazette within 6 months of such date of publication,
- after the date of publication of this Notice in the Gazette, within the financial year concerned, and
- for declarations for the month of March, on or before the 30th of April of the following financial year.
- An employer must pay the levy to the NTA into the National Training Fund bank account by –
- Electronic funds transfer, or
- Bank deposit
- Registration of Employer
- Any employer who is required to pay the levy must, within 30 days of the publication of this Notice in the Gazette complete the levy registration form in the form of Annexure B.
- An employer with a subsidiary establishment must complete a levy registration form in the Annexure B in respect of such subsidiary.
- Levy as debt due to the National Training Fund
- On the date of publication of this Notice in the Gazette, a levy that is due and payable is a debt to the National Training Fund and may be recovered by the NTA in the manner set out in section 40 of the Act.
Urgent User intervention is required for these changes.
Please refer to the Knowledge Base Articles below, for the steps required on the payroll:
How do I make changes to my payroll system, based on the VET Levy Amendments for Namibia?