Public Interest Score (PIS) is an important calculation for many companies in South Africa. It helps determine if a company needs an audit or not. This guide will explain what PIS is, how to calculate it, and why it matters - all in simple English.
South Africa Public Interest Score Calculator
Include full-time, part-time, and temporary workers employed for more than 3 months
Money owed to suppliers, banks, and other external parties
Check if your company is owned by a listed company or other entity that files public reports
Your Public Interest Score
Score Breakdown
| Component | Points |
|---|---|
| Employees | 0 |
| Third-Party Liabilities | 0 |
| Turnover | 0 |
| Shareholders | 0 |
| Public Company Ownership | 0 |
| Special Category | 0 |
Note: This calculator is based on the South African Companies Act (Act No. 71 of 2008). For official determinations, please consult with a qualified professional.
What is Public Interest Score?
Public Interest Score is a number given to companies based on different factors. The higher the score, the more "public interest" there is in the company. Companies with high scores must follow stricter rules.
The PIS was introduced in the Companies Act of South Africa (Act No. 71 of 2008). It helps decide which companies need audits and which don't.
Why is PIS Important?
Your company's PIS affects:
- Whether you need an audit
- Which financial statements you must prepare
- How much information you must share publicly
Companies with PIS of 100 or more usually need audits. Those below 100 might not need audits but must still follow other rules.
How to Calculate Public Interest Score
Here's how to calculate your company's PIS step by step:
1. Employees (1 point per employee)
Count all employees who worked for your company during the year. This includes:
- Full-time workers
- Part-time workers (count as 1 point each)
- Temporary workers if they worked for more than 3 months
2. Third-Party Liability (1 point per R1 million)
Look at your company's third-party liabilities at financial year-end. This includes:
- Money you owe to suppliers
- Loans from banks
- Other debts
Divide the total by R1 million (R1,000,000). Round down to the nearest whole number.
3. Turnover (1 point per R1 million)
Calculate your company's annual turnover (total sales before expenses). Divide by R1 million and round down.
4. Shareholders (1 point per shareholder)
Count all individuals who were shareholders at any time during the year.
5. Ownership by "Public" Company (Add 350 points if true)
If your company is owned by another company that must file public reports (like listed companies), add 350 points.
6. Special Cases
Some organizations automatically get high scores:
- Banks and insurers: 500 points
- State-owned companies: 500 points
Example Calculation
Let's calculate PIS for "ABC Products (Pty) Ltd":
- Employees: 28 → 28 points
- Third-party liabilities: R4.3 million → 4 points
- Turnover: R12.8 million → 12 points
- Shareholders: 3 → 3 points
- Not owned by public company → 0 points
- Not a bank/insurer → 0 points
Total PIS = 28 + 4 + 12 + 3 = 47
Since 47 is below 100, ABC Products might not need an audit (but must check other rules).
What to Do With Your PIS
| PIS Score | Requirements |
|---|---|
| 100 or more |
|
| 350-500 |
|
| Below 100 |
|
Tips for Calculating PIS
- Keep good records - Track employee numbers, debts, and sales throughout the year.
- Use the financial year-end - All numbers should be from the same 12-month period.
- Check definitions - Make sure you're counting the right things (like which liabilities count).
- Round down - Always round down to whole numbers when dividing by R1 million.
- Get help if unsure - Ask an accountant if you're not sure about any numbers.
Common Mistakes to Avoid
- Counting the same person twice (like as both employee and shareholder)
- Including internal debts (only third-party liabilities count)
- Using wrong time periods (must be financial year)
- Forgetting to add the 350 points if owned by public company
Resources for More Information
- Companies and Intellectual Property Commission (CIPC) - Official government site with company forms and guides.
- South African Companies Act - The full law that created PIS rules.
- SARS Tax Guide - Tax information that relates to financial reporting.
- SAICA Guide - South African Institute of Chartered Accountants resources.
Frequently Asked Questions
Q: Do all companies need to calculate PIS?
A: Most companies must calculate it, but some very small businesses might not need to.
Q: When should we calculate PIS?
A: Calculate it at the end of each financial year when preparing financial statements.
Q: What if our PIS changes a lot from year to year?
A: That's normal. Recalculate each year as your business changes.
Q: Can we do the audit ourselves if PIS is over 100?
A: No, audits must be done by registered auditors when required.
Q: Where do we report our PIS?
A: You don't usually report just the number, but it affects which forms you file with CIPC.
Conclusion
Calculating your Public Interest Score is important for following South African company laws. By counting employees, debts, sales, and shareholders correctly, you can determine your PIS and know what financial reports you need to prepare.
Remember:
- Calculate carefully each year
- Keep good business records
- Get professional help if needed
- Follow the rules for your PIS level
Understanding your PIS helps your business stay compliant and build trust with customers, suppliers, and authorities.
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