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Contributions in the financial year

Contributions in the financial year

One of the biggest challenges going into the new year, is the transition from the Independent Regulatory Board of Auditors (IRBA) accredited verifications to South African National Accreditation Systems (SANAS) accredited verifications.

The most important reminder for all companies, are that all contributions made towards Skills Development, Socio-Economic Development, Enterprise Development and Supplier Development must be done before financial year end. Should the required amount not be spent before the financial year end, the result will be that the company can not obtain points on these elements for their Broad-Based Black Economic Empowerment (B-BBEE) verification.

Please note that the following contributions need to be made before the end of the company’s financial year should they fall under the Codes of Good Practise (for most companies this will be the end of February 2017):

  1. Socio-Economic Development – 1% of your Net Profit After Tax
  2. Enterprise Development – 1% of your Net Profit after Tax
  3. Supplier Development – 2% of your Net Profit after Tax for a Generic Company and 1% of your Net Profit after Tax for a QSE Company
  4. Skills Development – 6% of your leviable amount (payroll) for a Generic Company and 3% of leviable amount for a Qualifying Small Enterprise

Should the company suffer a loss or a profit which is smaller than a quarter of the industry norm they will have to contact their legal advisor urgently to advise them regarding the amount that needs to be contributed seeing as the above mentioned percentages will not be applicable.

 ABOUT THE AUTHOR

Geralene van Wyk obtained her BA (Psychology) and LLB degrees from the North-West University. After her studies she completed her articles in Pretoria and was admitted as a practicing attorney in 2006 and a conveyancer in 2007. She joined SEESA BEE in 2011 as a legal advisor and is currently a SEESA BEE National Training Senior Legal Advisor at the Pretoria Head Office.

 

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