TAKING ADVANTAGE OF A SECTION 12J FOR YOUR PROVISIONAL TAX TO SARS (DUE 31 AUGUST 2019)

As the mid tax season for provisional taxpayers comes to an end on 31 August 2019 there is a way for you to save before submitting, by investing in a Section 12J venture capital company. 

First off.

An investment made into a Section 12J fund gives you (the taxpayer) exposure to the following:

• An immediate tax relief of up to *45% (*in the year in which your investment is made)
• A stable return on your investment
• Direct exposure to a rapid growing alternative asset class

We have uploaded an explainer video on Section 12J here.

Second off.

To not miss out on this 100% tax deductible investment – you will need to fill in and sign a form to affirm this intent. 

Email us at info@grovest.co.za to request the form. 

Third off.

There are three easy steps to calculate your provisional tax payment based on a revised taxable income, this will be after your Section 12 investment deduction.

Calculate your individual, company* or trust tax, year ending February 2020. *assuming 28/29 February year end for your company

Calculate your investment (Section 12J deduction) amount* you intend to invest into Section 12J for the tax year end for 29 February 2020.  *your Section 12J deduction is limited to R2.5m per investor year

Calculate your provisional tax payment based on your ‘now’ revised taxable income – this will be after your Section 12J investment deduction.

 

Points to take note of:

Compliance

To be compliant and avoid penalties – make sure your calculated and submitted return is compliant with the South African tax legislation. 

Supporting documents

Don’t forget your supporting documents that need to be submitted along with your tax return to SARS:

• Invoices – for expense claims
• Statements – on interest or capital gains earned on held investments
• A Schedule – for rental income and expenses for the tax year

In case you need it – SARS guide on provisional tax:

Guide for Provisional Tax 2020

Now, the fourth step.

Select from a list of Grovest’s Section 12J managed and promoted funds for your investment:

• Community Upliftment, free bed nights and and investment in the Kruger National Park – Mdluli Safari Lodge Limited
• A portfolio of S12J funds – MeTTa Capital Limited
• A portfolio of clean energy assets – Decentral Energy Capital Limited
• A portfolio of solar energy assets – Rencell Limited
• A portfolio of mobile media and movable assets – Sunstone Capital Limited 

For assistance or further explanation on how you can benefit from investing a Section 12J fund or company contact Melanie on 011 262 6433 or send us an email at info@grovest.co.za.

Disclaimer:

Grovest Corporate Advisory and its partners or affiliates do not provide tax, legal or accounting advice. The content provided here or online is for illustrative purposes only, and is not intended to provide, neither constitutes, nor should it be relied on for, tax, legal or accounting advice. You should consult your tax practitioner, legal advisor and/or accounting advisors for such advice.