Legal Articles

According to the Community Service Ombud Service Act, it is mandatory for all community schemes in South Africa to pay CSOS levies.

These levies serve to fund the operations of the CSOS. However, there is sometimes some confusion around the details of CSOS levies and why they are necessary.

Paying CSOS Levies in South Africa

Below are some questions and answers about CSOS levies that clarify why community schemes are obliged to pay them.

As of When are CSOS Levies Payable?

The CSOS Act came into effect on the 7^th of October 2016. The regulations of the Act stipulated that levies and the payment thereof would come into effect 90 days after the Act.

Therefore, as of the 7^th of January 2017, it became mandatory for community schemes to pay their CSOS levies.

Who is Liable to Pay?

CSOS levies are not owed by owners of community schemes. Instead, it is the responsibility of the community scheme to ensure that the CSOS levies are paid as per the regulations.

These levies are calculated according to the individual levies collected by the schemes from the individual owners within the scheme.

How are Levies Calculated?

When Must Levies be Paid?

According to the regulations, the levies must be paid to the CSOS on a quarterly basis, namely at the end of March, June, September and December each year.

May Community Schemes Insist on an Invoice from the CSOS?

Neither the Act nor the Regulations stipulate that the CSOS is required to issue a scheme for invoices for levies.

However, it remains the scheme’s responsibility to submit payment of the levies on time and as per the regulations.

Can a Scheme Collect Levies but Withhold Payment to the CSOS?

If a scheme withholds payments to the CSOS despite having collected levies from individual owners, the scheme will be liable to pay interest on the arear levies at a rate that has been prescribed by the National Credit Act.

Community Scheme Checklist for CSOS Compliance

This checklist will help community scheme executives to ensure that they remain compliant according to the CSOS Act and its Regulations.

Scheme executives should:

• Carry out the necessary administrative tasks to collect levies from unit owners, ensuring that owners are held legally liable for the payment of levies
• Calculate how the levy amount owed to the CSOS based on each unit’s monthly levies
• Be active in the pursuit of collecting levies owed by the owners
• Ensure the scheme is registered with the CSOS according to the relevant regulations
• Insist on paying your CSOS levies even if they haven’t received confirmation of registration – this will avoid inter

Van Deventer & Van Deventer Incorporated – Property Attorneys South Africa

It is mandatory for community schemes to pay CSOS levies as per the regulations of the CSOS Act. These levies are calculated based on the individual levies collected from unit owners.

Our property attorneys in Johannesburg and Cape Town are ready to assist you with levy collection as well as other matters related to property law.

For more information, please feel free to contact our attorneys.