1 / 17

The Vocational Training Fund

The Vocational Training Fund. TAXATION WORKSHOP 10 November 2010 L. M MPINANG. Presentation overview:. Introduction Administration of Fund Payment and Calculation of Levy Reimbursements Update on the VTF Challenges. Introduction. Informed by : 1993 Commission on Education

kanan
Download Presentation

The Vocational Training Fund

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. The Vocational Training Fund TAXATION WORKSHOP 10 November 2010 L. M MPINANG

  2. Presentation overview: • Introduction • Administration of Fund • Payment and Calculation of Levy • Reimbursements • Update on the VTF • Challenges

  3. Introduction Informed by : • 1993 Commission on Education • Revised National Policy on Education (1994) • National Policy on V E & Training (1997) • Vocational Training Act (1998) • Pre-Implementation Seminars (2007/2008) • Vocational Training (reimbursement )Reg No8/08 • Vocational training (levy ) no 9 0f 2008 • Levy Paying – (October 2008)

  4. GOALS • To generate sufficient funds to support skills training by employers= Increased skills base at the workplace • Support the goal of cost-sharing in skills development in Botswana • Helping to bring together supply and demand for training • Create opportunities in the training market

  5. Payment and Calculation of Levy • The amount of levy is based on the annual turnover of any Botswana company that is registered under the VAT Act or is liable for VAT at the following rates: • Annual turnover of P500,000 – P2 billion- levy = 0.2% of turnover • Annual turnover of more than P2 billion, contribution is 0.2% of turnover for the first 2 billion and 0.05% for any amount in excess of the P2 billion.

  6. REIMBURSEMENTS • Company must be up-to-date in paying Levy • Vocational Training that falls within the regulatory requirements (Accredited Institution or workplace) • Only training of citizens is claimable except for special cases where training of non-citizens is approved in advance by BOTA. • Prior approval by BOTA on Technician Training and up to Diploma level may be eligible (TEC approved)

  7. Reimbursement Formula/Limits • There are two grant limits • 1) Limit based on amount of Levy (Formula) • Every P1.00 paid as levy up to a maximumof P1,000.00 shall generate a grant of P5.00 • Every P1.00 paid as levy in excess of P1,000.00 but below P5,000.00 shall generate a grant of P2.50 Every P1.00 paid as levy in excess of P5,000.00 shall generate a grant of P1.25 2) The total training costs incurred The approved reimbursement is the lesser of the two limits.

  8. ReimbursementsFormula/Limits • Example: If turnover =P1,000,000 then Levy paid = P2,000 1) Grant limit based on levy is: P1000*5 +P1000*2.5 = P7,500.00 2a) If training costs are P10,000 Then the approved reimbursement will be P7,500.00 2b) But if training cost incurred is P4500 Then the approved reimbursement will be P4500

  9. Application for Reimbursement • Use the VTF claim form( from BOTA or ww.bota.org.bw) Attach: • Original receipts or certified copies showing payment for tuition, accommodation, meals and stationary; • Certified copy Omang for person(s) trained; • Certified trainee’s transcripts or certificates showing competencies; • Certified copies of attendance register; • Approval letter, if training was outside Botswana

  10. When can I Claim? Window Period Claims must have been lodged with the Authority on or before the 30th of June of each year

  11. EXEMPTIONS • Entities with an annual turn-over of less than P500, 000.00 • Diamond hub • Innovation hub

  12. Allocation to Special Groups At the beginning of each financial year , the Authority shall allocate funds as follows: • 2.5% for special groups • 1%for skills in emergent industries • 5% for small micro and medium enterprises

  13. Beneficiaries of VTF to-date

  14. Challenges • Few claims • Incomplete submissions • Use of non-accredited training providers • Companies not seeking pre-approvals • No training needs analysis done

  15. WAY FORWARD • Intensifying Public Education; • Consultations to explore broadening the scope of VTF • Improving monitoring mechanism of the VTF system to close “gaps”

  16. Contacts Plot 66450, Block 7 Private Bag BO 340 Gaborone Toll free: 0800 600 934 Web: www.bota.org.bw Email: info@bota.org.bw

  17. “UP SKILLING BATSWANA” THANK YOU

More Related