VET Levy
The VET Levy came into being, following the publication in the Government Gazette on the 27th of January 2014 of the final notice by the then Minister of Education, to impose the levy on eligible employers. Under this notice, all Namibian-registered employers with an annual payroll of N$ 1 000 000-00 (one-million), or more, are required to pay one percent of the value of their actual annual payrolls as a levy to the NTA’s National Training Fund, on a monthly basis. In turn, the NTA is to apply such funds towards upskilling and training Namibians in key national priority training and occupation areas.
Rationale
National Training Fund
Registration
Payment
Employer Training Grant
VETERP System
Rationale
The VET Levy’s raison d’etre is simple and straightforward: It is aimed at better refocusing our country’s training system and resources on meeting our national socio-economic development needs. Through the mobilisation of additional resources, the quality and quantity of skills development can be accomplished, skills shortages constraining enterprise development can be reduced, and productivity and incomes can be enhanced.
Therefore, the VET Levy supports the NTA in addressing the serious under-provision of demand-led training opportunities, which continue to constrain key aspects of our economic growth, and as such, threaten the realisation of the macro-economic development objectives under Vision 2030 and our National Development Plans (NDPs), which emphasise a skilled labour force as a precursor for growth and competitiveness.
Historically, funds devoted to our Vocational Education and Training sector have been insignificant compared to the overall budgets allocated annually to the general education sector. As an enterprise of government, the NTA applies funds generated through the VET Levy to effectively fulfill its mandate of establishing an equitable, accessible and efficient national training regime, as per the Vocational Education and Training Act of 2008. The cost of quality Vocational Education and Training remains very expensive. In fact, the unit cost for some occupational areas demands heavy financial and recurrent capital to respond effectively to the needs of labour, and to the ever-increasing use of technology, by industry.
National Training Fund
The National Training Fund (NTF) consists of – (a) money voted by Parliament for the purposes of the NTF, the NTA or for the administration of the VET Act; (b) any education and training levies, interest and penalties paid by employers in terms of the VET Act; (c) any money received by the NTA, including donations; (d) any interest earned on investments of the NTF; and (e) any money to which the NTF is, or may become, entitled.
The control and administration of the Fund vests in the NTA Board. The National Training Fund Council (NTFC) were established by the NTA Board of Directors to assist the Board in the control and administration of the NTF. Monies in the NTF may only be applied –
(a) to provide financial and technical assistance to employers, Vocational Education and Training providers, employees, learners and other persons or bodies to promote Vocational Education and Training;
(b) to fund Vocational Education and Training programmes and projects – (i) identified in the National Policy on Vocational Education and Training or the NTA’s Strategic Plan for Vocational Education and Training; or (ii) that the NTA considers necessary to achieve the objects of the VET Act;
(c) to expenditure incurred by the NTA in the performance of its functions in terms of or under the VET Act, including its core administration costs as contemplated in Sections 5 and 7;
(d) to any other expenditure incurred by the NTA or the Board in, or in connection with, the performance of their functions in terms of the VET Act; and
(e) to any other expenditure authorised by the VET Act.
The income of the NTF, including income from any investments, is exempt from income tax or any other tax. The income of the Fund, including income from any investments, is exempt from income tax or any other tax. The financial year of the NTA and of the Fund ends on 31 March of each year.
Click on the link below and read more about the regulations relating to use of of the VET Levy for funding VET programmes and projects and for providing technical and financial assistance.
Registration
The final framework requires with the exception of exempt organisations, all employers operating within the borders of Namibia with an estimated annual payroll of N$1 000,000-00 (one million Namibia dollars) or above, for each Financial Year (1st April 2014 – 30th March 2015 onwards), as defined in the VET Act of 2008, to register with the NTA. Following the announcement from the Minister of Education of the VET Levy requirements in the Government Gazette on the 27th January 2014, eligible employers were required to register with the NTA. The commencement date for the imposition of the VET Levy was the 1st of April 2014.
Registration is a continuous process for new employers and for employers who since has exceeded the threshold. Make sure that the following information is available to ensure a smooth registration process:
• Name of Company/Employer;
• Type of Business Entity;
• Number of Branches/Subsidiaries;
• Nature of Business – Business Sector/Subsector;
• Registration Number, Income Tax Number and Social Security Registration Number of Company;
• Physical & Postal Address, Contact Particulars such as Telephone, Fax and E-mail details of the Company;
• Number and Gender of Employees;
• Full Banking Details; and
• Estimated Annual Payroll for Current Financial Year.
Employers are encouraged to register by the following link: http://veterp.nta.com.na/
Where online registration is not possible, registration forms are available from the NTA’s National Training Fund Department, or can be downloaded and completed through the following link: Employer Levy Registration Form
Complete and submit the form, or e-mail it to levy@nta.com.na Registered employers should complete and return the Payroll Return Form to the NTA each month following the levy implementation date. For assistance, call us at 061 2078 588/509, or email, levy@nta.com.na
Payment
The Namibia Training Authority has been delegated by the Minister of Finance to collect the VET Levy. The NTA’s National Training Fund Department deals with all matters relating to the fund and especially all VET Levy collection and disbursement issues and the registration of employers for levy payment and grant purposes.
Employers register with the NTA in line with the requirements set out in the Minister of Education’s Notice in the Government Gazette, published on the 27th of January 2014. They forecast their total payroll for the financial year and calculate their liability to pay levy and incorporate the projected levy amounts in the employer registration form.
Under the approved framework, the levy rate is 1% and the amount of levy to be paid is calculated as a percentage of annual projected payroll and paid monthly in arrears on, or before the 20th of the month that it is due, i.e. VET Levy payable for April 2020 should be paid on, or before the 20th May 2020. Payroll is defined according to the Labour Act of 2003 as remuneration being the total value of all payments in money, or in kind made or owing to an employee. Remuneration paid to employees below the Income Tax threshold must be incorporated into the employer’s payroll for determining the leviable amount in the Act.
The amount payable can be calculated as follows:
Annual payroll/remuneration is N$1,000,000-00.
1% Annual Levy = N$10,000-00.
Monthly Return = 10,000/12 = N$833-00 each month.
In line with Section 7 of the Notice for the Imposition of the Vocational Education and Training Levy, every employer who must pay the levy in terms of the notice, must make such payments into the National Training Fund Bank Account of the Namibia Training Authority. Payments may be made by way of electronic funds transfer, cheque or cash directly into the account. Below the account details:
Name: National Training Fund
Bank: Bank Windhoek
Acc. #: 800 390 93 68
Branch Code: 482-172
Branch: Kudu, Windhoek.
Employer Training Grant
In terms of Section 4 of Government Notice No. 5, an employer who complies with the eligibility criteria for the Employer Training Grant (ETG), must prepare and submit, within 31 days after the end of the financial year, an application to the NTA. The Regulations Relating to Use of Vocational and Training Levies for Funding Vocational Education and Training Programmes, Projects, and for Providing Technical and Financial Assistance. The VET Act No.1 of 2008 define training as “training which is related to vocational training provided by a private vocational training provider accredited by the Namibia Qualifications Authority (NQA), or a state owned vocational training centre.
In line with this definition, the NTA is to consider the following training interventions under the Employment Training Grant:
a) All NQA accredited VET courses;
b)Training courses not accredited by the NQA, but related to accredited VET courses; and
c) As an exception, training courses not accredited, not related to accredited training courses, but related to VET courses. This may include short courses, in-house training and training outside of Namibia. Approval by the NTA Board is required in this case.
ELIGIBILITY CRITERIA FOR EMPLOYER TRAINING GRANTS: Employers must meet the following eligibility criteria to submit a claim under the Employer Training Grant:
a) Up to date with the payment of the VET Levy payable by the employer;
b) Does not have any interest referred to in Section 38 of the VET Act or any penalty referred to in Section 39 of the VET Act, outstanding in respect of the VET Levy;
c) Has submitted to the NTA evidence of the implementation of training i.e. completed and submitted a claim together with relevant documentation (copies of invoices and proof of payments where applicable).
COSTS QUALIFYING FOR GRANTS: Where training is conducted internally or externally , eligible costs include:
a) Facilitator training costs;
b) Cost of training materials used in the training process;
c) Assessment and certification costs;
d) Subsistence and Travelling (S&T) allowance costs and expenses, for both facilitators and trainees.
e) Travel cost
f) Accommodation cost
EVIDENCE REQUIRED TO CLAIM: Evidence may include the following:
a) Signed attendance register or certificate of attendance;
b) Invoices and proof of payments from the training service provider;
c)Invoices and proof of payments for training materials;
d) S&T records in accordance with company policy;
e) Invoice and proof of payment for Accommodation costs;
f) Invoices and proof of payments for Assessment and certification costs; and
g) Any other supplementary records and receipts applicable to the training. For inspection purposes, employers are to maintain all of the aforementioned records and any other relevant supporting information, in line with the Directorate of Inland Revenue’s prescribed five-year retention period. Employers who comply with the above criteria must submit claims to the NTA within 31 days after the end of the financial year.
HOW DO COMPANIES CLAIM?:
All training claims are submitted to the ETG division. Contact us at 061 2078 168/170/505, or e-mail us at levyclaims@nta.com.na
To learn more about the ETG claim application and submission processes, click on the link below:
VET Levy ETG Submission Forms for the year 2024
VETERP System
Welcome to the VET Levy’s Enterprise Resource Planning platform! For VET Levy payments, click on the link below to access the platform to pay your monthly VET Levy. Have your username and password ready!
Should you experience any problems with your VET Levy Payments and/or your Employer Training Grant Claims, contact us at +264 61 2078 550, 061 2078 588 / 509 / 522 or e-mail us at levy@nta.com.na