Inter-SETA Transfer is the process of transferring an entity from one SETA to another SETA. The IST-01 application form must be completed and accompanied by the motivational letter, which should clearly state the reason/s relied on. The 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.
An IST may be done under any of the following circumstances:
• The company has been incorrectly registered with a SETA where the main business activity does not match the industrial scope of the SETA;
• The main business of the enterprise has changed since the previous registration with SARS and now better suits the industrial scope of another SETA;
• The employer falls within the jurisdiction of more than one SETA, and the employer’s application to transfer to the new SETA is motivated by:
» the composition of the workforce;
» the amount of remuneration paid or payable to the different categories of employees; and
» the training needs of the different categories of employees.
Should an organisation wish to move from another SETA to the HWSETA, the IST-01 form must be submitted to the SETA with which the organisation is currently registered. Should a company wish to move out of the HWSETA to another SETA the IST-01 form must be submitted to the HWSETA. The Seta must in turn approve the application and forward the signed application to the Department of Higher Education and Training (DHET). DHET then verifies the request and submits the form to the South African Revenue Services (SARS) who will process the change This is a process that can be time consuming. If the application is declined by the relevant SETA, an organisation can dispute this with the SETA in question. If the transfer is still not effected, the matter can be escalated to DHET. Although the SETA facilitates this process, the SETA cannot be held responsible for changes not being made timeously. It is ultimately the responsibility of the organisation to ensure that they are registered with the correct SETA and to monitor the process and ensure the transfer is completed.
The attached IST 01 needs to be completed and then sent to the existing Seta for approval. The process is as follows:
The Inter-SETA transfer form must be signed by the organisation’s CEO or Managing Director. This document should detail the core business or main business activities of the organisation in order to facilitate the transfer.
