How do we calculate the CSOS Levy if our scheme pays annual levies instead of monthly levies?
The CSOS Act states the following in terms of the formula for calculating CSOS levies:
Quote from the STSM Act:
Regulation 11
Levies and amounts payable
(1) Every community scheme must pay the levy referred to in the Community Schemes Ombud Service Regulation: Levies and Fees on quarterly basis.
(2) The Minister may, by notice in the Gazette, set and amend –
- An application levy factor in the form of a decimal fraction for each of various stated categories of scheme, with definitions of each category;
- A maximum amount of the levy for a community scheme in each category ; and
- The rate of discount or waivers of levies, with details of the qualifications for such discount or waivers.
(3) The levy is calculated to any applicable maximum amount, discount or waiver referred to in sub-regulation (2), according to the following formula:
(a) The lesser of R40.00 or 2% of the amount by which the monthly levy charged by the Scheme exceeds R500.00
So if the scheme has annual levies you would need to divide it by twelve to get the monthly levy so that you can calculate the monthly CSOS levy