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News & Press: LEGISLATION WATCH

BBBEE amendments and EMEs

03 February 2014   (4 Comments)
Posted by: technical@saiba.org.za

As provided under the current Codes, Exempted Micro-Enterprises (EMEs) are deemed to have a Level 4 BBBEE status and start-up enterprises are measured as EMEs. However the threshold for qualifying as an EME has been increased from R5 million (or less) to R10 million (or less) total annual income. This will assist small firms which would otherwise not have benefited from the deemed Level 4 status.

 

The threshold for being a Qualifying Small Enterprise (QSE) has been increased to between R10 million and R50 million total annual income (from between R5 million to R35 million under the current Codes). The Amendments provide that the BBBEE status of QSEs will be measured by reference to all five BBBEE elements (under the current Codes, QSEs may choose to be measured by reference to any four of the existing seven elements) and are subject to the automatic downgrade in BBBEE status if the minimum requirements referred to below are not met. QSEs will accordingly be subject to a more onerous regime than under the current Codes.


EMEs and QSEs that are 100% black-owned will be deemed to have a Level 1 BBBEE status. Those that are 51% black-owned will be deemed to have a Level 2 BBBEE status. This is a significant advantage over other EMEs and QSEs especially given the increase in the number of BBBEE points required to achieve a particular BBBEE level as earlier mentioned.


Under the Amendments, EMEs and QSEs will no longer need a certificate from a BBBEE verification agent to confirm its BBBEE status. All that is required is an affidavit certifying its total annual income and level of black ownership. This will save costs for EMEs and QSEs.

 

Source Werksmans

 

To read full article - click here


Comments...

Takawira Mapurisa says...
Posted 06 February 2014
thats a positive move by the regulators. verification agents had become unreasonably expensive.
Takawira Mapurisa says...
Posted 06 February 2014
thats a positive move the regulators
Jack Mthombeni sr says...
Posted 04 February 2014
I guess this bad news for those verification agents?
Oladele A. Akanmu Mr says...
Posted 03 February 2014
It a good news for the EMEs

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