Business owners must remember that the contributions their company needs to make toward Skills Development, Socio-Economic Development, Enterprise Development and Supplier Development, must be done before the financial year-end. Should they not spend the required amounts before the financial year end, it will result in them being unable to obtain points on these elements when the financial year is used for B-BBEE verification.
Please note that the following contributions need to be made before the end of the financial year, should you fall under the Codes of Good Practice (for most companies this will be the end of February 2019):
- Socio-Economic Development – 1% of your Net Profit After Tax.
- Enterprise Development – 1% of your Net Profit after Tax.
- Supplier Development – 2% of your Net Profit after Tax for a Generic Company and 1% of your Net Profit after Tax for a Qualifying Small Enterprise (QSE). You must also ensure that you procure from the supplier development beneficiary in the financial year.
- Skills Development – 6% of your leviable amount (payroll) for a Generic Company and 3% of the leviable amount for a QSE.
Should your company suffer a loss or a profit which is smaller than a quarter of the industry norm, you will have to contact your legal advisor urgently to advise you regarding the amount that needs to be contributed seeing as the abovementioned 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.