An Inter-SETA Transfer (IST) of an employer means the transfer of an employer that has been classified by the Commissioner of the South African Revenue Service (SARS) with a particular SETA, to another SETA i.e. the process of transferring an organisation from one SETA to another.
The transfer may be done under any of the following circumstances:
Step 1: The employer submits IST-01 (‘Application by an employer for an inter-SETA transfer’) to SETA between April-June of each year. SETA verifies the application to ensure that it is in line with the scope of demarcation of the new SETA to which the employer wishes to be transferred.
Step 2: SETA verifies application.
Step 3: If approved, the SETA forwards the IST-01 to DHET with recommendation.
Step 4: If not approved, the SETA informs the employer in writing citing the reasons why the IST was not approved. The employer’ is entitled to appeal against the SETA’s decision to the Department of Higher Education and Training (DHET). The procedure that should be followed must be stated in the letter. The appeal form - IST-04 is attached in this SOP.
Step 5: DHET (Sub-Directorate: Levy Grants) verifies the application to ensure that it is in line with the scope of demarcation of the new SETA to which the employer wishes to be transferred.
Step 6: DHET (Sub-Directorate: Levy Grants) forwards the IST-01 to the Commissioner with recommendation.
Step 7: The Commissioner verifies that the employer is up to date with skills levy payments to avoid corrections for previous years after the transfer before proceeding with the IST. If there are outstanding skills levy payments the Commissioner informs the employer to settle these payments before the transfer will be approved. After paying the outstanding skills levies the employer must resubmit the completed IST-01, together with proof of payment of the skills levies to the Commissioner.
Step 8: The Commissioner approves the IST and re-classification of the employer with the new SETA, and records the transfer on the SDL Employer Database effective from date of transfer.
Step 9: DHET (Sub-Directorate: Levy Grants) informs the previous and new SETA that the Commissioner has transferred the employer through the DHET website.
Step 10: The new SETA acknowledges the transfer of the employer through the prescribed form IST -02: “SETA acknowledgement of employer classification” to inform the employer of the chamber and chamber code and communicate its levy grant system to the employer.
Step 11: The new SETA requests relevant employer documentation from the previous SETA through the prescribed form IST-03: ‘Request for documentation of a transferred employer’.
Step 12: The previous SETA provides the requested documentation to the new SETA.
Please note that the transfer process of an employer from one SETA to another SETA can take anything between three (3) to six (6) months, and longer in some cases.
For more information, contact Nomusa Maphanga on +27(0) 11 253 7329 or firstname.lastname@example.org.
Posted in Latest News on Jul 12, 2022
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