SARS REBATE

• The SDL is a 1% tax on the total payroll paid by employers to SARS under the Skills Development Act.
• It aims to fund the development of skills in South Africa by incentivizing training programs.
• Collected funds are managed by the Sector Education and Training Authorities (SETAs) to support industry-specific skills development.

• The rebate system exists to encourage companies to invest in employee training and upskilling.
• Employers can claim back a portion of their Skills Development Levy when they participate in accredited training programs.
• This system supports the national goal of building a skilled and employable workforce, especially in specialized sectors like real estate.

• Financial Relief: Rebates reduce the net cost of training, easing the financial burden on employers.
• Tax Incentives: Training-related expenses may qualify for deductions, further reducing taxable income.
• Workforce Development: Investing in training enhances employee capabilities and overall company productivity.
• Compliance: Supporting industry qualifications ensures alignment with statutory requirements from bodies like the PPRA (Property Practitioners Regulatory Authority).

4.1. Submission Requirements

To qualify for rebates, employers must:

• Pay SDL contributions monthly.
• Submit a Workplace Skills Plan (WSP) detailing planned training initiatives.
• Submit an Annual Training Report (ATR) documenting completed training activities.
• Ensure training is aligned with their respective SETA’s priorities, such as the Services SETA for property practitioners.

4.2. Rebate Rates

• Companies can reclaim up to 20-50% of their SDL contributions through compliance.
• Rebates depend on the fulfillment of specific SETA requirements:
• Mandatory Grant: Reclaimable for submitting WSP and ATR on time.
• Discretionary Grant: Additional funds may be awarded for industry-critical training programs, including those for property practitioners.

4.3. Accredited Training Programs

• Only accredited training providers qualify for rebate claims.
• Training must align with recognized qualifications, like the NQF Level 4 or 5 for Candidate Property Practitioners.

1. Register with SARS for SDL Contributions:
• Ensure your company is compliant and contributing monthly.
2. Engage an Accredited Training Provider:
• Partner with institutions like Itakane Real Estate Academy to train employees in compliance with PPRA standards.
3. Develop and Submit WSP & ATR:
• Outline training objectives and outcomes, focusing on the NQF-aligned property practitioner qualifications.
4. Submit Evidence of Training:
• Include attendance records, certificates, and proof of expenses.
5. Claim Rebate Through Your SETA:
• Apply for the Mandatory Grant and possibly the Discretionary Grant for extra funding.

6.1. Employers

• Companies in the real estate sector employing Candidate Property Practitioners can significantly reduce training costs.
• Businesses benefit from developing an in-house pipeline of qualified professionals.

6.2. Employees

• Candidates receive high-quality training subsidized by their employers, enabling them to achieve full property practitioner status.
• This improves their earning potential and career prospects.

6.3. Industry

• A better-trained workforce enhances professionalism, compliance, and client satisfaction in the real estate market.

• Employers must ensure compliance with the Property Practitioners Act and training regulations set by the PPRA.
• By training Candidate Property Practitioners, companies fulfil obligations to develop qualified professionals, a critical industry requirement post-2024 under the QCTO framework.
• Rebates act as a reward for meeting these regulatory and developmental goals.

• 8.1. Tax Deductions

  • Training expenses for employees may qualify for deductions under the Income Tax Act.
  • These include costs for tuition, materials, and other related expenses.

  8.2. B-BBEE Points

  • Training contributes to points on the Broad-Based Black Economic Empowerment (B-BBEE) scorecard under the Skills Development pillar.
  • Supporting candidates from previously disadvantaged groups enhances compliance and competitiveness.

• 9.1. Documentation Compliance

  • Accurate, timely submission of WSP and ATR is critical.
  • Solution: Use a dedicated team or consultant to handle documentation.

  9.2. SETA Processes

  • Delays or rejections from SETAs can occur due to incomplete applications.
  • Solution: Partner with experienced training providers familiar with SETA requirements.

  9.3. Employee Retention

  • Trained candidates may leave the company after qualifying.
  • Solution: Implement retention strategies like contracts binding employees for a specific period.

• For Employers: Sustained cost savings and a stronger, more competent workforce.
• For Employees: Improved career trajectories with recognized qualifications.
• For the Real Estate Industry: Higher standards, professionalism, and compliance across the board.