NB: Amended Codes of Good Practice
The 10 most important things you need to know about the Amended Codes of Good Practice, effective 30 April 2015:
- The introduction of Priority Elements and the Discounting Principle.
- There are 3 Priority elements for Generic Enterprises and 2 for Qualifying Small Enterprises (QSE).
- The Threshold Levels have changed and now a minimum of 80 points (previously 65 points) are required to achieve a Level 4 B-BBEE status (100% recognition level).
- Management Control incorporates the Employment Equity element and is now measured as per percentage of Economically Active sub-race groups and gender (Black is further divided into African, Indian and Coloured).
- Skills Development target increased to 6% of leviable amount from 3% and now includes both employees and non-employees.
- Procurement targets have increased and the Exempt Micro Enterprise (EME) and QSE categories have been further divided.
- Suppliers have to qualify as Empowering Suppliers for their B-BBEE status to be included for calculation purposes.
- The Amended Codes now require that 2% of Net Profit after Tax (NPAT) is spent on Supplier Development and 1% on Enterprise Development
- Socio-Economic Development is now calculated annually and not cumulatively.
- A Black owned and controlled business is now at least 51% black voting rights and economic interest compared to 50.1% in the old Codes.
The DTI has also confirmed that the QSE scorecard is still to be issued. All Sector Codes are also in the process of being aligned to the Amended Codes by 30 April 2015.
All material subject to our Legal Disclaimers.