Skills Development Levy Act 1979

“Agency” means the SkillsFuture Singapore Agency established by section 3 of the SkillsFuture Singapore Agency Act 2016;

“company” —

“employee”, in relation to a month, means an employee rendering in that month services wholly or partly in Singapore and an employee who is on leave during that month where such leave is attributable to services rendered wholly or partly in Singapore in any previous month, but does not include any domestic servant, gardener or chauffeur, wholly and exclusively employed by an individual otherwise than in connection with his or her trade, business, profession or vocation;

“employer” means any person who pays or is liable to pay any remuneration to an employee;

“Fund” means the Skills Development Fund established under section 5;

“remuneration” means any wages, salary, commission, bonuses, allowances (including a housing allowance or other like allowance) or other emoluments paid in cash by or on behalf of an employer to an employee, and includes any leave pay;

“skills development levy” or “levy” means skills development levy imposed by this Act;

“sub-fund”, “umbrella VCC” and “variable capital company” have the meanings given by section 2(1) of the VCC Act;

“VCC Act” means the Variable Capital Companies Act 2018.

Subject to the provisions of this Act, every employer must, in respect of each of the employer’s employees, pay a skills development levy of the greater of the following amounts:

For the purpose of subsection (1)(a), the levy is not chargeable on the part of the remuneration of the employee in any month that exceeds $4,500 or such other amount as the Minister may, by notification in the Gazette, prescribe.

The levy must be collected and paid in respect of the month of October 1979 and every subsequent month.

Without prejudice to any other remedy, the levy may be recovered as a debt due to the Agency from the person accountable for the levy.

On 1 October 1979, a Fund called the Skills Development Fund is established.

The Fund consists of —

The objects for which moneys of the Fund may be applied are as follows:

In carrying out the objects of the Fund, the Agency may from time to time authorise moneys of the Fund to be paid out and expended for all or any of the following purposes:

The Agency must administer the Fund in accordance with the provisions of this Act and must collect the skills development levy and disburse grants and loans from the Fund for the purposes of this Act.

The Agency has power to do all things necessary or convenient to be done for or in connection with the performance of its functions under this Act.

The Agency may appoint such agents (including the Government) as may be necessary for the purposes of this Act.

The Agency may delegate all or any of its powers and functions under this Act to any employee or agent (including the Government) as it may appoint under subsection (1).

The Agency may pay to any person appointed under subsection (1) a fee for any services rendered in exercise of any powers and functions delegated to that person under this Act.

The Agency may use moneys from the Fund for all expenses incurred by the Agency for the purposes of this Act.

Any person who negligently or without reasonable excuse —

Any person who wilfully with intent to evade payment of the levy or to aid or abet any other person to evade payment of the levy —

For the purposes of this section, where it is proved that any false statement is made in any return by or on behalf of any employer, or in any payroll register, books of account or other records maintained by or on behalf of any employer, that employer, or person answerable for the employer, is presumed, until the contrary is proved, to have made that false statement with intent to evade payment of the levy.

For the purposes of this section, “levy due and unpaid” means the levy that is due and unpaid at the time when the offence is committed.

The institution of proceedings for or the imposition of a penalty, fine or term of imprisonment under this section shall not relieve any employer from liability to pay any levy for which the employer is or may be liable.

A person must not in relation to the person’s application, or in support of an application by another, for any incentive, grant or loan from the Agency out of moneys in the Fund, make, or authorise the making of, a statement that the person knows to be false or misleading in any material particular.

A person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 12 months or to both.

To avoid doubt, it is not a defence in any proceeding for an offence under subsection (2) that the accused did not obtain any incentive, grant or loan from the Agency out of moneys in the Fund.

Where a person is convicted of an offence under section 12, the court may, in addition to imposing a penalty under that section, order the person to make repayment of the amount of any money wrongfully obtained.

Where an order has been made under subsection (1), a certified copy of the order may be filed in a court having civil jurisdiction to the extent of the amount ordered to be repaid and the order is then enforceable in all respects as the final judgment of that court.

The powers under this section may be exercised only for the purpose of inquiring into or ascertaining —

The Agency, or an employee or agent of the Agency duly authorised by the Agency for the purposes of this section, may, at any reasonable time, do any of the following, without involving any search of any property or person:

The power to require a person to furnish any document or information under subsection (2)(c) includes the power —

The Agency may abate any penalty or compound any offence under this Act or any regulations made under this Act by accepting from the person who is reasonably suspected of having committed the offence a sum not exceeding $1,000.

All sums received for the composition of any offence under this section must be paid into the Consolidated Fund.

The Agency must, as soon as practicable after the end of each financial year, cause to be prepared and transmitted to the Minister an annual report dealing generally with its administration of the Fund during the preceding financial year and containing such information relating to the proceedings and policy of the Agency in relation to its administration of the Fund as the Minister may, from time to time, direct.

The annual report for any financial year must set out any directions given by the Minister under section 19 and must contain a report of any action taken by the Agency during that financial year consequent on the directions.

The Minister must as soon as practicable cause a copy of every such report to be presented to Parliament.

Despite subsection (1), the Minister may at any time request the Agency to furnish the Minister with any information concerning any matter relating to the administration of the Fund by the Agency, and the Agency must furnish the Minister with the information required, and give the Minister or the Minister’s representative all necessary facilities for the verification of the information required.

In the distribution of property of a bankrupt or a person dying insolvent, there is to be included among the debts that, under section 352 of the Insolvency, Restructuring and Dissolution Act 2018, are to be paid in priority to all other debts the amount of any levy due from the bankrupt at the date of the bankruptcy order, or from the person so dying at the date of the person’s death, and having become due within 12 months before that date.

In the winding up of a company, there is to be included among the taxes that, under section 203 of the Insolvency, Restructuring and Dissolution Act 2018, are to be paid in priority to all other unsecured debts the amount of any levy due from the company and having become due within 12 months before the date of commencement of the winding up.

In the winding up of a variable capital company, there is to be included among the taxes that, under —

In the winding up of a sub‑fund of an umbrella VCC, there is to be included among the taxes that, under —

In this section, “operative date” means the date of commencement of sections 17(b) to (i), 18 to 21, 29, 30, 43 to 48, 50 to 53, 56, 58, 59 and 62 of the Variable Capital Companies (Miscellaneous Amendments) Act 2019.