With the new BEE legislation, companies will find it extremely difficult to comply and earn BEE points.
The following two options are available to companies to improve their BEE points for their scorecard:
1. Support clients and suppliers with BEE scorecards on the highest possible level.
2. Opting into learnership agreements with certain unemployed ethnic groups.
Skills development and learnerships become more and more popular as part of the BEE compliance process.
Using this process will work in short as follows:
- Employ certain ethnic group youth with ages between 18 and 29, with a salary scale of R 2,000 to R 6,000. This will be done under a registered learnership agreement.
- You will receive a monthly tax incentive from SARS for every youth employment in service
- On an annual basis you will receive a taxable allowance for each learnership to be deducted from your income tax calculation. The potential benefit will be 28% of the allowable deduction.
The above is a very short summary of the easiest ways to get BEE points on your scorecard and receive tax benefits from SARS.
It will require a lot more consultation to fully prepare your company for this, but it will be worth every second of your efforts.
Feel free to contact us to assist you further.
We are currently members of the Institute of Accounting & Commerce (The principle director JN Basson are registered with practice number AO652993) & South African Institute of Tax Practitioners.
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Tel: 021 987 1288
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