Siyazisiza has a Broad-Based Black Economic Empowerment (BBBEE) status of Level 1 QSE contributor.
The revised codes of good practice encourage companies to help previously disadvantaged South African citizens gain sustainable access to the economy and contribute towards the development of black-owned small businesses and their access to the market.
By partnering with the Siyazisiza Trust – a level 1 B-BBEE contributor with a 100% black beneficiary profile – your clients have an opportunity to maximize their B-BBEE points on four of the five compulsory B-BBEE scorecard elements:
By donating towards the Trust’s agriculture initiatives, companies have an opportunity to earn the full allocation of points for Enterprise and Supplier Development (40 points), and Socio-Economic Development (5 points), which are also considered compulsory elements on the revised B-BBEE score-card.
One of the easiest ways to earn points is through the Enterprise and Supplier Development Element. This Element counts for 40 points on the Generic Scorecard and for 30 points on the Qualifying Small Enterprise (QSE) Scorecard.
The three sub-elements are:
The focus is on assistance to and development of Black Owned Enterprises and the support of Black Entrepreneurs (at least 51% Black owned and a Turnover of less than R 50 million pa).
According to clause 126.96.36.199 of Statement 600 of the B-BBEE Codes of Good Practice, payments made by the Measured Entity to a third party (The Siyazisiza Trust) to perform enterprise development on the Measured Entity’s behalf qualifies as an Enterprise Development Contribution.
For Enterprise Development companies will have to spend 1% (1% QSE) of their nett profit after tax.
All of the Trust’s Enterprise Development beneficiaries 100% Black owned are EMEs (Exempt Micro Enterprises) and as such any contributions made are multiplied by a factor of 1.25.
Support can take the form of “grants”, “loans” etc.
The preferential procurement element of the B-BBEE scorecard measures the extent to which a company purchases its qualifying goods and supplies from B-BBEE compliant suppliers as evidenced by the B-BBEE scorecard rating of the supplier.
According to the B-BBEE Codes of Good Practice, companies procuring goods or services from the Trust, as a Level 1 QSE, would obtain 135% recognition of procurement spend against their BEE score.
There are a number of products and services that which could be procured from the Trust, these include:
The Siyazisiza Trust has been supporting social-economic development for over 30-years with the objective of facilitating income generating activities for targeted beneficiaries. Under the SED element, companies can make contributions to the Trust as monetary or non-monetary (services).
As a Public Benefit Organisation with Section 18A Status, companies making monetary or asset donations under this category would be able to obtain the double benefit of an 18A deduction (up to 10% taxable income) as well as the relevant B-BBEE points.
For Socio-Economic Development, companies have to spend 1% of their nett profit after tax per annum to receive up to 5 points on their B-BBEE score card.
The revised codes of good practice also offer companies the opportunity to maximize their points for skills development. Companies who might find it difficult to achieve the skills’ development spend target can now increase their score by funding the Siyazisiza Trust’s skills development programmes for agricultural producers or the Siyazisiza Trust’s own black employees.
Skills development measures the extent to which companies carry out initiatives designed to develop the competencies of black people internally and externally.
Companies are required to spend 6% of their payroll on training. This training includes the following:
Companies can also improve their black ownership status by offering the Siyazisiza Trust a percentage of shares for which funding will be received in the form of dividends.
As a Level 1 QSE, the Siyazisiza Trust is well placed to meet a company’s ownership needs under the national B-BBEE Codes. Through partnership with Siyazisiza Trust a company could score up to 25 points on the Ownership element.
Siyazisiza Trust is a non-profit organisation and qualifies as a Public Benefit Organisation (PBO) in terms of Section 30 of the Income Tax Act. Siyazisiza has been approved for purposes of Section 18A (I)(a) of the Act and donations to the organization are tax deductible in the hands of donors in terms of and subject to the limitations prescribed in Section 18A of the Act.
Donations that qualify for Section 18a receipts:
Account Holder: Siyazisiza Trust
Branch Code: 198 405
Account Number: 101 965 5666