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We Issue B-BBEE Certificates For Companies With A Turnover Above R10 Million. Please Contact Taxleaders For Details.
At Taxleaders, we understand B-BBEE creates a more sustainable business environment. Which benefits stakeholders, including companies, employees, and communities.
What The Codes Say About B-BBEE 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 B-BBEE Excempt?
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 is R1.5 for Built Environment Professionals (BEP’s). This includes architects, consulting engineers and quantity surveyors. Therefore, there has been no change to the threshold for contractors.
- For all businesses in the tourism sector the threshold is 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.
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Broad-Based Black Economic Empowerment Services By Tax Leaders
Why is it important to be B-BBEE certified? Broad-Based Black Economic Empowerment initiated by the South African government in 2003. If a company is BEE compliant, other BEE companies will do business with you because they will increase their own score on the BEE scorecard.
Additionally, it will benefit your company’s score under the Preferential Procurement section on the B-BBEE scorecard if you support other BEE companies.
Are you aware that organization’s BEE certificate is only valid for 1 year? Companies need to go through the B-BBEE verification process once a year.
The careful selection of a BEE verification agent and thorough preparation for BEE audits can enhance an entity’s performance in BEE verification.
We strive to be leaders in black-based empowerment services. Offering quality, innovation & operational expertise. Let Tax Leaders help achieve your B-BBEE goals!
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