Use BBBEE as a strategic tool to unlock new markets and growth, rather than simply getting a tick on your scorecard
Futureneers, in partnership with B4i offer Corporates and Private Companies, tailor-made BBBEE solutions built around commercial business principles and sustainable empowerment rather than simply getting a compliance tick on their scorecards.
BBBEE structures driven through commercial sustainability
The starting point for any legal or tax structure should be a commercially viable transaction with long term sustainability and empowerment objectives. We use BBBEE structures to assist Corporates and Private Companies achieve these objectives.
100% Tax deductible
All contributions are 100% Tax deductible in accordance with Section 12J of the Income Tax Act, simply meaning, that the business saves an immediate 28%. All SARS and FSB compliance are undertaken by Futureneers™ B4i without the need for the Corporate or Private Company to register, run and manage their own Section 12J Venture Capital Fund.
All contributions qualifies for BBBEE ESD scorecard points
Our unique funding structure enables Corporates and Private Companies to utilise Enterprise and Supplier Development ("ESD") contributions for funding its BBBEE initiatives. Over and above the 100% tax deduction, 70% of all contributions will qualify for ESD BBBEE scorecard points on an ongoing basis while the investment is retained.
Ongoing support and compliance while being part of the B4i network
The Futureneers B4i Empowerment offering not only includes an initial setup and structuring of the transaction, but ongoing help with compliance and business growth support. As part of our offering, we connect each participating company to the B4i network with an ultimately objective of generating long-term additional commercial benefits through every transaction undertaken.
Become part of the B4i initiative
The B4 Initiative is a private sector initiative and comprises a national network of companies and service providers that all subscribe to the B4i Empowerment Model™.
Participating companies within the B4 Initiative commit to making a positive contribution towards promoting entrepreneurship and implementing black economic empowerment (“BEE”) within the guidelines of the B4i Empowerment Model™.
For more about the B4i initiative, click here.
Use current or new ESD budgets to fund future innovation while getting an immediate 28% tax break
Enterprise and Supplier Development forms a strategic part of our implementation strategy. Enabling companies to allocate their existing (or newly created) ESD Budgets to innovation, while also benefiting from the tax incentives provided by Section 12J of the Income Tax Act.
How It Works
Structured BBBEE that qualifies for a tax deduction and ESD scorecard points
1Setup, Funding and Structuring
We assist our partners to identify opportunities where BBBEE can be used to further their commercial and empowerment objectives. The transaction is then structured within the Futureneers B4i Empowerment framework to maximise benefits and address key long-term goals.
2Initial Tax and ESD Benefits
As a registered section 12J vehicle, each transaction is 100% deductible for Income tax purposes - leading to an immediate 28% saving for every participant. In addition, the transaction is funded from ESD Budgets and 70% of contributions qualifies for BBBEE ESD points.
3Ongoing ESD Benefits
While the investment in Futureneers B4i Empowerment is retained, all initial funding (and top-up payments should it be required) will qualify for 70% ESD contributions every year - even without making additional payments to the structure every year.
4Long-term synergies
As already mentioned, a key part of the B4i empowerment model is connecting participating companies to other industries or commercial opportunities using BBBEE as strategic catalyst - with the ultimate aim to generate additional commercial benefits and long term, sustainable empowerment.
Futureneers B4i Empowerment RF (Pty) Ltd is a registered Financial Services Provider (FSP no. 47705 ) and registered Section 12J Venture Capital Company (VCC-0053).