# Regulatory Compliance Category > BEE and Employment Equity Forum >  Tax benefits of BEE

## duncan drennan

MoneyWeb is running a story on how SARS is trying to encourage BEE compliance.




> The South African Revenue Service (Sars) tax incentive comes into play for companies introducing a BBBEE employee share plan.
> _________________
> 
> MandyÃ¢â¬â¢s Hardware can claim a deduction equal to the market value of the shares made available to the trust. The deduction is limited to R3 000 per employee per year, but the balance can be rolled over to successive years.
> 
> Full story on MoneyWeb

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## Dave A

Interesting!!

Just to note that the validity of this statement is questionable right now.



> Small to medium enterprises (SMEs) which have more than five employees and an annual turnover exceeding R300 000 have to comply with BEE. Without a BEE partner or employment equity SMEs are less likely to win government contracts or be awarded licences.


Two points. Where the threshold will finally be set between exempt enterprises and qualifying small enterprises is unknown until the final codes are published.

I'm also interested in why exactly we *have* to comply with BEE. I'm not aware of any legislation that demands that companies must impliment BEE.

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