We are almost at the end of another year, which means that we are getting closer to the end of the financial year.
It is very important for businesses to remember to make all the required contributions towards their B-BBEE verification before the end of their financial year. With the correct planning and budgeting you will not get caught at the end of the financial year with big amounts still having to be paid. It is easier to pay a large amount like R2000 over 5 months, than R10 000 once-off.
This is especially important for an element like Skills, where the target amount that needs to be spent is very high – 6% of your leviable amount for a Generic Entity and 3% of you leviable amount for Qualifying Small Enterprises (QSE).
Contributions to make before the end of your financial year*:
*These targets are for entities that will be rated on the Codes of Good Practice – entities that fall under a certain Sector Code may have different targets.
- Socio-Economic Development: 1% of NPAT (Nett Profit after Tax)
- Enterprise Development: 1% of NPAT
- Supplier Development: 2% of NPAT for Generic Companies and 1% of NPAT for QSEs.
- Skills Development: 6% of your leviable amount (payroll) for Generic Companies and 3% of your leviable amount for QSEs.
If your business isn’t generating a profit but runs a loss, it is very important for you to contact your legal advisor to enable them to calculate the amount that needs to be spent. This calculation will be taking the Indicative Profit Margins into consideration.
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.