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CAPE TOWN - The Department of Trade and Industry (the dti) and The South African Insitute of Chartered Accountants (SAICA) assist entities with obtaining the necessary information to obtain B-BBEE status confirmations. 

The Broad-Based Black Economic Empowerment (B-BBEE) Act was amended in 2003. The Amended Codes of Good Practice issued under section 9 of the Broad-Based Black Economic Empowerment (B-BBEE) Act (Act No 53 of 2003, as amended) came into effect on 1 May 2015. 

According to Act 53, Small Medium and Micro-Enterprises (SMME's) that qualify as Exempt Micro Enterprises (EMEs) and black controlled and owned Qualifying Small Enterprises (QSEs) are required to obtain a sworn affidavit annually, confirming their annual total revenue and level of black ownership.

EME and QSE

“An EME is an entity with an annual turnover of R10 million or less while a QSE is an entity with an annual turnover of R 10 million or more but less than R50 million", said Senior Executive of The South African Institute of Chartered Accountants (SAICA),  Julius Mojapelo. 

“According to the B-BBEE Commission, the purpose of this intervention is to reduce the cost of compliance and the cost of doing business for small businesses in South Africa". 

The Act stipulates that all EMEs automatically qualify as Level 4 contributors, 100% owned EMEs qualify as Level 1 contributors whilst EMEs that are at least 51% black owned qualify as Level 2 contributors. 

QSEs with 100% black ownership qualify as Level 1 contributors while QSEs with at least 51% black ownership qualify as Level 2 contributors.

“The B-BBEE Commission has advised organs of state to desist from undermining the intent and spirit of the legislation and to align their procurement processes to minimize confusion, bureaucracy and unnecessary costs for small businesses", said Mojapelo. 

Mojapelo further notes that any accounting or verification professional who issues certificates to EMEs and QSEs which contradict the B-BBEE Act will face having their accreditation withdrawn or revoked. 

The template of affidavits for EMEs and QSEs for compliances is provided by the Department of Trade and Industry. 

The template can be accessed here

Additional guidance on the B-BBEE status confirmation for EMEs and QSEs can be located in the below documents: 

B-BBEE Commission’s Practice Guide 02 of 2016 – B-BBEE Certificates with regard to Exempted Micro Enterprises and Qualifying Small Enterprises

National Treasury’s Circular 5 of 2016/17 – Submission of B-BBEE status level certificates and sworn affidavits

Also, further assistance is provided by members of SAICA who act as accounting officers and verification professionals, are required to practice under oath by departing correct advice and guidance to individuals who wish to obtain their B-BBEE status confirmations in accordance with the requirement of the amended codes. 

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- BUSINESS REPORT ONLINE