Up to 350% Return on ESD Spend*
* Roll-over may not apply to all contributions. Please book a presentation to find out which projects qualify.
Assuming the investment/loan is retained for 5 years, this means that the Contributing Company receive up to 350% return on their ESD contributions (e.g. 70% per year being R700 recognition for 5 years), or put differently, receiving a R3,500 ESD recognition for every R1,000 invested over a 5 year period, while at the same time contributing towards sustainable BBBEE model aimed at enabling the future black entrepreneurs of South Africa. The potential cash-flow impact of making a R1, 000 contribution to the ESD Company is illustrated by the example below:
BBBEE ESD Scorecard recognition = Year by year roll over
Year 1 Tax deduction = 100% in accordance with Section 12J of the Income Tax Act
