FREQUENTLY ASKED QUESTIONS (FAQs) ON THE TRANSFER OF ADMINISTRATION OF THE TOURISM GRADING SUPPORT PROGRAMME TO THE TGCSA
Q: Who qualifies for the discount on tourism grading assessment fees?
A: All establishments that apply for tourism grading with the TGCSA and meet the qualifying criteria and submit all required supporting documentation will receive the discount either at initial application or upon renewal of membership.
Q: How do I qualify for the discount?
A: By completing the online application form on the TGCSA website (www.tourismgrading.co.za) and uploading all required supporting documentation including:
a copy of a current and valid SARS Tax Clearance Certificate;
a copy of relevant business registration documents i.e. company registration document (for CCs and Private Companies)/ Partnership Agreement (for Partnerships)/ Trust Deeds (for Trusts)/ Identification Document (for Sole Proprietors);
a certified copy of B-BBBEE certificate or a sworn affidavit (in the case of Exempt Micro Enterprise (EME) or Qualifying Small Enterprise (QSE) with more than 51% black shareholding); and
a copy of public liability insurance documents.
Q: Do I have to comply with all conditions in order to qualify for the discount?
A: Yes, all conditions and required documentation are mandatory as indicated in the application form in order to qualify for the discount in assessment fees.
Q: Do TGCSA members automatically qualify for the discount?
A: No, all conditions (inclusive of all required documentation) as indicated in the application form must be met. It should further be noted that government-owned entities are excluded.
Q: What constitutes a “valid” copy of a Tax clearance Certificate?
A: A Tax Clearance Certificate is issued by the South African Revenue Service (SARS) and is normally valid for a period of one year. The expiry date is indicated on the certificate. In cases where the certificate submitted has expired, the applying enterprise will be notified to renew their certificate and upload a valid copy of the Tax Clearance Certificate.
Q: Where do I get a Tax Clearance Certificate?
A: A copy of the Tax Clearance Certificate can be obtained via the SARS e-Filing system (www.sarsefiling.co.za) or in the case of the old manual system an original Tax Clearance Certificate can be requested from SARS.
Q: I do not have a Tax Clearance Certificate – Can I submit an IT8/ ITA34 form instead?
A: No, only a copy of a valid Tax Clearance Certificate as issued by SARS is acceptable as part of the required documentation to be uploaded to qualify for the discount. For members who have been exempted from tax, e.g. pensioners, SARS can issue a Tax Clearance Certificate which declares that the individual is in good standing even though they have been exempted.
Q: What documentation is required to prove business registration?
A:This is dependent on the nature of the registered entity:
for a Close Corporation or Private Company, this would be a copy of the registration documents issued by the Companies and Intellectual Property Commission (CIPC);
for a Cooperative this would be a copy of registration documents and constitution;
for a Partnership, this would be a copy of the Partnership Agreement;
for a Trust, this would be a copy of the Trust Deeds; and
for a Sole Proprietor, this would be a copy of the personal Identity Document of the sole proprietor.
Q: What are the requirements in terms of a B-BBEE compliance certificate?
A: All tourism enterprises are by law required to comply with the Tourism Broad-Based Black Economic Empowerment (B-BBEE) Sector Codes as amended in 2016 (A guide to the Amended Tourism B-BBEE Sector Codes is available from the Department’s website (www.tourism.gov.za). In terms of compliance with the Amended Tourism B-BBEE Sector Codes, it is important to note the following compliance categories, how these are defined and how compliance is recognised:
Exempted Micro Enterprise (EME): An EME is defined as a tourism enterprises with a total annual turnover of R5 million or less. To prove B-BBEE compliance an EME is required to submit a sworn affidavit on an annual basis, confirming i) total annual revenue being R5 million or less, and ii) the percentage black ownership. This provision is also applicable to start-up enterprises. (The format of the required sworn affidavit should be similar to that of the template available on the website of the CIPC www.cipc.co.za)
Qualifying Small Enterprise (QSE): A QSE is defined as a tourism enterprises with a total annual turnover of more than R5 million, but less than R 45 million. To prove B-BBEE compliance a QSE is required to submit a verification certificate from an accredited verification agency that indicates compliance against all elements of the QSE scorecard. In the case of a QSE that is majority black owned (51% and above) the QSE is only required to obtain a sworn affidavit on an annual basis confirming i) total annual revenue of more than R5 million, but less than R 45 million, ii) the percentage of black ownership and iii) empowering supplier status. (The format of the required sworn affidavit should be similar to that of the template available on the website of the CIPC www.cipc.co.za)
Large Enterprise (LE): A LE is defined as a tourism enterprises with a total annual turnover of more than R45 million. To prove B-BBEE compliance a LE is required to submit a verification certificate from an accredited verification agency that indicates compliance against all elements of the LE scorecard.