BEE Exempt Certificates – We also issue BEE certificates for companies with a turnover above R10 million, please contact us for details
What the Codes Say about BEE Exemption?
According to paragraph 4 of the Codes of Good Practice for Black Economic Empowerment :
- Any Enterprise with an annual Total Revenue of R10 million or less qualifies as an Exempt Micro-Enterprise.
- Exempt Micro-Enterprises are deemed to have a B-BBEE Status of “Level Four Contributor” having a B-BBEE procurement recognition of 100%
- If the Exempt Micro-Enterprise is 51 – 99% black owned, it is promoted to a “Level Two Contributor” having a B-BBEE procurement recognition of 125%
- If the Exempt Micro-Enterprise is 100% black owned, it is promoted to a “Level One Contributor” having a B-BBEE procurement recognition of 135%
- Sufficient evidence of qualification as an Exempt Micro-Enterprise is an auditor’s certificate or similar certificate issued by an accounting officer or verification agency (BEE EME Exempt Certificate)
Is my company BEE Exempt?
According to paragraph 4 of the DTI’s gazetted codes of good practice for Black Economic Empowerment businesses with turnover of less than R10 million qualify as exempted micro enterprises and are thus 100% BEE compliant. Companies who have Black shareholding exceeding 50% qualify as 125% BEE compliant. This means that if any company procures goods or services from you they can recognize 100% or 125% respectively of what they spend on as BEE spend. However, since the gazetting of the codes of good practice for Black Economic Empowerment in 2007 there have been 2 sector codes that have changed the requirements for some South African businesses, specifically those in the construction and Tourism sectors.
- In the construction sector, the exemption threshold has been reduced to R1.5 for Built Environment Professionals (BEP’s). This includes architects, consulting engineers and quantity surveyors. There has been no change to the threshold for contractors.
- For all businesses in the tourism sector the exemption threshold has been reduced to R2.5 million.
New BEE Amendments Bill of 2012 – Companies with a turnover of R10 million – R50 million
- If a company has a turnover of more than R10 million and less than R50 million, the company will qualify for either a Level 1 / Level 2 BEE Certificate IF the black ownership is more than 50%
- For a QSE with black ownership of 51% but less than 100%, a Level 2 Contributor applies
- For a QSE with black ownership of 100%, a Level 1 Contributor applies.