Category: BBBEE

Die impak van die nuwe BGSEB-kodes vir goeie praktyk op jou onderneming

A2bDie samestelling en verifiëring van ‘n telkaart van ‘n entiteit in terme van die Wet op Breedgebaseerde Swart Ekonomiese Bemagtiging (BGSEB) word uitgevoer volgens die Kodes vir Goeie Praktyk (die Kodes) wat deur die Departement van Handel en Nywerheid (dti) uitgereik is. Die Kodes is gewysig en die nuwe Kodes is op Vrydag 11 Oktober 2013 in die Gazette gepubliseer. Hierdie verandering sal ‘n beduidende impak hê op die BGSEB-strategie van ondernemings, en daar sal deeglik besin moet word oor aanpassings van hierdie aspek.

Belangrike veranderings van die vorige Kodes sluit in:

  1. Die sewe elemente op die telkaart is tot vyf elemente gereduseer en die belading van elke element is soos volg aangepas:
    • Eienaarskap (25 punte belading)
    • Bestuursbeheer (15 punte belading)
    • Vaardigheidsontwikkeling (20 punte belading)
    • Ondernemings- en Verskaffersontwikkeling (40 punte belading)
    • Sosio-Ekonomiese Ontwikkeling (5 punte belading)
  2. Die totale aantal punte sal nou 105 wees in plaas van die vorige 100.
  3. Die elemente Eienaarskap, Vaardigheidsontwikkeling en Ondernemings- en Verskaffersontwikkeling is nou gekategoriseer as prioriteitselemente, wat beteken dat sekere minimum vereistes van toepassing op hierdie elemente is. Daar word van groot ondernemings verwag om aan al die prioriteitselemente te voldoen, terwyl Kwalifiserende Klein Ondernemings (KKO’s) die keuse het om aan Eienaarskap en een van die oorblywende prioriteitselemente te voldoen.
  4. Indien daar nie aan die minimum vereistes wat aan die prioriteitselemente gestel word, voldoen word nie, sal die werklike vlak wat behaal word, met een vlak verlaag word.
  5. Die beperkings vir Vrygestelde Mikro-ondernemings (VMO’s) is aangepas vir ondernemings met ‘n jaarlike omset van tussen R0 en R10 miljoen (tensy ‘n sektorhandves van toepassing is). VMO’s sal steeds as vlak vier-bydraers beskou word.
  6. KKO-beperkings is aangepas vir ondernemings met ‘n jaarlikse omset van tussen      R10 miljoen en R50 miljoen (tensy ‘n sektorhandves van toepassing is).
  7. VMO’s en KKO’s met swart eienaarskap van meer as 51% sal outomaties as vlak twee-bydraers kwalifiseer.
  8. VMO’s en KKO’s met swart eienaarskap van 100% sal outomaties as vlak een-bydraers kwalifiseer.
  9. Nuwe ondernemings sal steeds as VMO’s gemeet word tydens die eerste jaar na die vorming van die onderneming.

Daar sal ‘n tydperk van twaalf maande wees vanaf 11 Oktober 2013 tot 10 Oktober 2014 waartydens ondernemings die keuse het om hul telkaarte saamgestel en geverifieer te kry onder óf die ou Kodes óf die nuwe Kodes. Die doel hiervan is om aan ondernemings die geleentheid te gee om hul BGSEB-strategie te implementeer en in lyn te bring met die nuwe Kodes. Sektorhandveste moet ook in lyn met die nuwe Kodes gebring word, maar dit is onduidelik of dit moontlik sal wees of selfs vereis word om dit binne hierdie twaalf-maande tydperk te doen.

Dit is uiters noodsaaklik om die advies van kenners in te win wanneer die onderneming se BGSEB-strategie aangepas word, ten einde duur foute te voorkom en die maksimum voordeel vir die onderneming te verseker, maar terselfdertyd behoorlik aan die vereistes van die relevante BGSEB-wetgewing te voldoen. Ondernemings wat byvoorbeeld voorheen op ‘n jaarlikse Sosio-ekonomiese Ontwikkelingstoelaag staatgemaak het om ‘n vereiste BGSEB-vlak te verkry, sal hierdie bedrag nou aansienlik moet aanpas.

Slegs gekwalifiseerde verifikasie-agente wat onder IRBA of SANAS geakkrediteer is, mag onafhanklike verifiërings uitvoer en die toepaslike sertifikaat uitreik.

Hierdie artikel bevat slegs algemene inligting en moenie gebruik of beskou word as professionele raad nie. Geen aanspreeklikheid word aanvaar vir enige foute of weglatings of vir enige verlies of skade weens vertroue op hierdie inligting nie. Raadpleeg altyd u finansiële raadgewer vir spesifieke en gedetailleerde advies.

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The impact of the new BBBEE codes of good practice on your business

article2-blog-novemberThe compilation and verification of a scorecard for an entity in terms of the Broad-Based Black Economic Empowerment (BBBEE) Act is done according to the Codes of Good Practice (the Codes) issued by the Department of Trade and Industry (the dti).

The Codes have been amended and the new Codes were gazetted on Friday 11 October 2013. These changes will have a significant effect on the BBBEE strategy of businesses and careful consideration will have to be given to adjustments in this area.

Major changes to the previous Codes include:

  • The seven elements on the scorecard are reduced to five elements and the weighting of each element has been adjusted as follows:
    • Ownership (25 points weighting)
    • Management Control (15 points weighting)
    • Skills Development (20 points weighting)
    • Enterprise and Supplier Development (40 points weighting)
    • Socio-Economic Development (5 points weighting)
  • The total score will now amount to 105 instead of the previous 100.
  • The elements Ownership, Skills Development and Enterprise and Supplier Development are now categorised as priority elements, which means that certain minimum requirements are set for these elements. Large enterprises are required to comply with all the priority elements, whereas Qualifying Small Enterprises (QSEs) have a choice to comply with Ownership and one of the remaining priority elements.
  • If the minimum requirements set for priority elements are not met, the actual level obtained will be discounted by one level.
  • The limits for Exempt Micro-Enterprises (EMEs) have been adjusted to enterprises with an annual turnover of between R0 and R10 million (unless a sector charter applies). EMEs will still be deemed to be level four contributors.
  • QSE limits have been adjusted to enterprises with an annual turnover of between R10 million and R50 million (unless a sector charter applies).
  • EMEs and QSEs with black ownership of more than 51% will automatically qualify as level two contributors.
  • EMEs and QSEs with black ownership of 100% will automatically qualify as level one contributors.
  • Start-up enterprises will still be measured as EMEs during the first year following the formation of the enterprise.

There will be a twelve-month period from 11 October 2013 to 10 October 2014 during which businesses may choose to have their scorecard compiled and verified under either the old Codes or the new Codes. The purpose of this is to give businesses a chance to align and implement their BBBEE strategy to comply with the new Codes. Sector charters also have to align to the new Codes, but it is unclear whether it will be possible or even required to do this during the twelve-month period.

It is crucial to seek expert advice when adjusting any entity’s BBBEE strategy in order to avoid costly mistakes and ensure maximum benefit for the business, while properly complying with the relevant BBBEE legislation. For instance, enterprises that previously relied on an annual Socio-Economic Development grant in order to obtain a required BBBEE level will have to significantly adjust this amount.

Only qualified verification agents accredited under IRBA or SANAS may conduct independent verifications and issue the applicable certificate.

This article is a general information sheet and should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.

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Broad-Based Black Economic Empowerment

article1-October-bMost businesses in South Africa these days have to obtain a valid Broad-Based Black Economic Empowerment (BBBEE) certificate. In fact, the lack of a valid certificate has in many instances prohibited some businesses from continuing to do business with certain suppliers.

BBBEE is fast becoming a certainty in the business environment in South Africa, and it is imperative that businesses incorporate this in their operational and strategic planning. An effective and successful implementation of a BBBEE strategy may have a significant impact on other aspects of the business, such as operations, tax planning and long-term business strategy. Proper consultation with skilled advisors is vital to avoid costly mistakes and ensure the achievement of the long-term goals of the business.

The calculation of an entity’s BBBEE scorecard is regulated by the Broad-Based Black Economic Empowerment Act No. 53 of 2003, together with the Codes of Good Practice (the Codes). Furthermore, certain sectors of the economy have their own charter in terms of which the scorecard of business in that sector will be calculated, rather than the generic codes. In most cases, only an accredited verification agent may conduct the verification process and issue the resulting BBBEE certificate. Verification agents are currently accredited by either IRBA or SANAS.

In terms of the Codes, a business will fall into one of three categories, which will then determine how the BBBEE score is calculated. If a sector charter applies, these criteria might be different from those set out in the generic codes.

The first category is Exempted Micro-Enterprises (EMEs). These will be entities with an annual turnover of less than R5 million, or start-up enterprises (newly formed businesses that have been in operation for less than twelve months). These EMEs will have an automatic recognition level 4, or automatic recognition level 3 in the case where the EME has black ownership of more than 50%. A registered auditor, accounting officer or BBBEE verification agent may issue such a certificate, and the certificate is valid for a period of 12 months.

The second category is Qualifying Small Enterprises (QSEs). These are entities with an annual turnover between R5 million and R35 million. In such cases (according to the QSE Codes) the entity only has to be measured against four of the seven elements of the scorecard, which simplifies the verification process and gives the business a better chance to obtain a good score. Only an accredited verification agent may conduct the verification process and issue the BBBEE certificate to the business. The certificate is valid for a period of 12 months.

The third category is businesses with an annual turnover of more than R35 million, which will be measured according to the Generic Codes. A score will be calculated for all seven elements on the scorecard, which will then determine the BBBEE score of the entity. Only an accredited verification agent my conduct the verification process and issue the BBBEE certificate to the business. The certificate is valid for a period of 12 months.

To ensure the minimizing of costs, an effective verification process and the least amount of disruption to the operations of a business, the help of professional and skilled advisors is vital.

This article is a general information sheet and should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.

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