Let Tax Leaders Assists with Obtaining BEE-Exempt Certificates
Do you know what your BEE status is? Have you even thought about verifying it yet? The BEE system affects both small and large businesses. As a business owner, you are probably aware that your BEE status in South Africa can make a big difference to how you do business. In the business world, BEE applies to South African citizens by birth or by descent. It also applies to anyone who became a citizen of the country before 27 April 1994 by means of naturalisation.
Of course, this does not mean that a newly formed business needs to comply immediately, and this is where BEE-exempt certificates come in. A BEE-exempt certificate is also known as a BEE EME certificate. You qualify for such a certificate if your business has a turnover of less than R5 million per year and if you are a start-up entity. Start-up entities can be BEE exempt for 12 months of operation. The BEE EME certificate can be provided by qualified and registered auditors, accounting officers, and South African National Accreditation System (SANAS) agencies.
Just starting your own business in South Africa can be challenging. It can be even more challenging to understand BEE and what is involved in the process. The BEE system has been set in place to rectify the injustice of inequality prior to 1994. Government tenders and large contracts with multinational companies prefer and send business on to BEE-compliant companies. If you are not BEE compliant, your business stands to lose out. If your business’ turnover is less than R5 million per annum, it will be automatically exempt from verification on the BEE system. It will therefore qualify as a Level 4 100% contributor.
At Tax Leaders, our qualified and experienced accounting officers can assist you with acquiring your BEE-exempt certificates. We can also provide you with a better understanding the BEE system and how businesses are measured and verified. Understanding the system is a great way to ensure that you can use it to your advantage to grow and develop your business in the future.
If you would like to gather more information and advice on how to obtain BEE-exempt certificates, we recommend that you get in touch with us at Tax Leaders. We are available via email and telephone and look forward to assisting you with getting the right status verification and related certificates for your business.