Do I need to pay SDL?

[stiwi]

I am employed at my Pte Ltd company since more than 1 year, holding Employment Pass. I haven't heard about Skills Development Levy (SDL) until today, when I received a letter which was not even indicated for my company, but was addressed to where I live.

So question is, do I have to pay this or this is only for those who are contributing to CPF?

[sundaymorningstaple]

You are not being very clear. Employees do not pay the SDL. The Employer pays the Skill Development Levy based as a % of each employee's income.

[ecureilx]

You are not being very clear. Employees do not pay the SDL. The Employer pays the Skill Development Levy based as a % of each employee's income.

Does that include EP holders or only PR/SC ?

[stiwi]

You are not being very clear. Employees do not pay the SDL. The Employer pays the Skill Development Levy based as a % of each employee's income.

Sorry for not being clear. I have Pte Ltd company. Being an employer myself, do I have to pay SDL?

According to WDA:
"The SDL is payable for all employees rendering services wholly or partially in Singapore. This includes employees either on a casual, part-time or temporary basis, as well as foreign employees including foreign workers, special pass and employment pass holders. The SDL to the foreign workers in addition to Foreign Workers Levy payable to Ministry of Manpower".

I understand this as "yes" I should pay the SDL but seeking confirmation.

What about FWL, do I (employer) need to pay this (for myself)?

[sundaymorningstaple]

You and the company are two separate entities. Even though you own 100% of the shares of the company, it has a life of it's own now. Therefore you have to keep company accounts and personal accounts. The company pays your, you don't pay yourself.

If the company is paying you a salary, yes. The company must pay the SDL when it makes it's CPF payments (a single payment inclusive of employee & employer CPF contributions, SDLs & the racial donations like SINDA, Mendaki, CDAC, etc if you or your employees are subject to them (if you are a foreigner but Malaysian/Muslim you also have to pay). If you are subject to the FWL then you also need to pay that as well if you are working in your company on a Work Permit or S pass. EP's are not subject to FWLs. You need to set up an account with the MOM and arrange a giro deduction from your company bank account so that the FWL can be deducted.

If you are the only employee (most likely), then while you won't be paying into the CPF as you are a foreigner, you will still have to remit, via the CPF board, the SDL monthly and also set up a GIRO for FWL if you are having foreign employee's (e.g., yourself).


Foreign Worker Levy

http://mycpf.cpf.gov.sg/Employers/Gen-I ... er.htm#FWL

Skills Development Levy (SDL)

http://www.ifaq.gov.sg/wda/apps/fcd_faq ... wvtw%3d%3d

http://mycpf.cpf.gov.sg/Employers/Gen-I ... er.htm#SDL

These links should help.


ecureilx,

Yes, the Skills Development Levy is payable on ALL employees regardless of EP or Citizen/PR or WP.

[stiwi]

Thanks SMS.
To sum up, there is no need to pay FWL for EP holders, but it is obligatory to pay SDL. I didn't know this to be honest and even my accountant didn't mention about it while doing general statement for FY 2010.

I bet a lot of people who are in the same position as me, don't even know they shall contribute in SDL. I didn't even get notification from WDA of any possible unpaid contributions, despite being employed for more than 12 months.

[sundaymorningstaple]

The CPF link I posted above is from the Employers Guide. You should download the entire guide and give it a good read or TWO. Will hold you in good stead.

But you are right, there is no FWL for EP holders. But. There is for Work Permit and S Pass holders though. And, yes, it is obligatory to pay SDL for ALL employees.

sms