Companies donating to FITA are now entitled to a deduction from taxable income.
Flooring Industry Training Association (FITA) is proud to announce that any donations received are now tax deductible thanks to the organisation being approved as a Public Benefit Organisation in August 2016. These donations are used to equip local flooring installers with accredited skills and provide the crucial training that is needed to ensure a high level of quality in the industry.
Flooring companies that donate to FITA or pay annual membership fees will now be able to use their contributions to help maximise BBBEE benefits through their annual spend on Skills Development or Enterprise Development. This contribution will also help companies meet their procurement scorecard requirements. The organisation notes that the number of elements in the amended Codes of Good Practice has been reduced to five: ownership, management control, skills development, enterprise, supplier development and socio-economic development. According to the revisions, the priority elements that companies are encouraged to focus on are ownership, skills development and enterprise and supplier development. Failing to comply with a 40% sub-minimum in any of these priority elements will lead to an automatic reduction of one level in the company’s contribution level.
According to the scorecard revisions, skills development now takes into account the training of employees as well as unemployed people who could be employable. A larger focus is also being placed on employment equity and skills development – with black females now carrying their own, separate measurement indicators.
“We are happy to advise that any company making a bona fide donation to FITA will be entitled to a deduction from taxable income. The donation will be supported by the necessary section 18A receipt issued by FITA,” comments the organisation.
Please contact Neil Duncan at firstname.lastname@example.org with any questions or queries.