Introduction:

SDL: stands for Skills Development Levy, is a levy collected by TRA under the Vocational Education Training Act and Income Tax Act.

Chargeability: SDL is charged based on the gross pay of all payments made by the employer to the employees employed by such employer in the particular time. Unlike PAYE the SDL is due and payable by an employer.

The gross emoluments is a sum of amount from salaries, wages, payments in lieu of leave, fees, commissions, bonuses, gratuity, any subsistence travelling , entertainment or other allowance received by employee in respect of employment or service rendered.

In general everything chargeable under PAYE is also taken into account when calculating SDL.

Who is liable for SDL?

Any person who employs four or more employees shall pay SDL from gross emoluments.

Applicable rates:

The rate applicable for SDL is 5% of the total emoluments paid to all employees during the month.

The employee includes permanent employees, part time employees, secondary employees, casual laborers etc.

 Employer’s obligation:

  • To calculate the actual amount and pay the amount to Commissioners account to the respective Tax Region in which such employer is registered.

 The SDL payments shall be made in line with PAYE using the same bank-pay-slip.

  • To prepare a monthly return and submit to the TRA office on or before the 7th day of the month following the month of payroll.

To prepare and remit half year certificate which tally with the monthly returns submitted during the period.