164 Katherine Street, Sandton

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REPORT:

HERE’S WHY SECTION 12J DESERVES YOUR IMMEDIATE ATTENTION.

Section 12J might be cut short after June 2021, but our bespoke report shows why this alternative asset class still serves as an incredibly attractive investment vehicle. Take advantage before it ends. We’ve interviewed seasoned Fund Managers from leading 12J funds to gauge how this last bid to raise capital for these Venture Capital Companies serves your best interest – whether you’re a first time or seasoned investor into 12J.

 

Some key points discussed

– Investing in 12J versus sending funds off-shore

– Is your investment risk increased given that 12J isn’t continuing

– Are the underlying companies at risk if they can’t raise further capital after June

For more information download the Fund Manager Report here:

DO YOUR HOMEWORK

We strongly encourage all investors to do their homework on the right fund before investing. We’ve created an Investment Considerations tool to help.

Click below to download the Investment Consideration documentation.

DO YOU HAVE ANY QUESTIONS?

CHOOSE THE RIGHT FUND, IN THE RIGHT INDUSTRY

Mdluli Safari Lodge
For the luxury bush lover looking for leisure returns

Investments from
R150,000

Rencell Solar
For the investor looking for a covid and recession resistant solar investment

Investments from
R100,000

SilverLeaf Investments
For astute investor looking to participate in the world’s fastest growing industry

Investments from
R100,000

MeTTa Capital
For the more conservative or first time 12J investor looking to diversify their investment returns

Investments from
R350,000

Pepperclub Invest
For the investor with only 5% deposit

Investments from
R1,080,000

Sunstone Capital
For the risk-averse investor looking for a stable return on asset-backed investments

Investments from
R105,000

INVESTMENT FUND PRESENTATIONS

We have a number of videos relating to our Investment Fund Presentations hosted on our YouTube channel, see you there!

FOR MORE INFORMATION GET IN TOUCH

– Section 12J of the Income Tax Act No. 58 of 1962 was legislated by the South African Government in 2009 to encourage South African taxpayers to invest in local companies and receive a 100% tax deduction of the value of their investment. The investor in return receives a Section 12J tax certificate and Venture Capital shares. The invested amount can be deducted from the investor’s taxable income, in the year the investment is made.

– The tax relief is provided for South African taxpayers investing in a registered Section 12J company. The tax relief is claimed in the year the investment is made. The table below shows the effect of the income tax relief on an individual and company basis. It assumes that the initial investment is R1 000 000. The tax rates for individuals and companies are used accordingly.

*Assuming highest marginal tax bracket for individuals/trusts

Description Individuals/Trusts Corporates
Initial Investment (R1 000 000) (R1 000 000)
Tax relief (in tax year of initial investment) * R450 000 R280 000
Net Investment (Risk Capital) (R550 000) (R720 000)
Effective tax relief * 45% 28%

– Investors who dispose of their shares before 5 years from the date of the allotment of shares will be subject to tax as a recoupment on the initial tax deduction.

– A tax certificate with the details of the investment in the Section 12J investment may be required to substantiate a claim for a tax deduction.

– The maximum investment for an individual/trust is R2 500 000 and R5 000 000 for a company.

– The maximum investment for an individual/trust is R2 500 000 and R5 000 000 for a company.

When 12J was introduced, it was given a 12-year lifespan, and subject to a ‘Sunset Clause’ which ends 30 June 2021. This then gives taxpayers one last investment window into 12J – making their investment before the 30th of June.

We are deeply disappointed by the Minister’s decision around Section12J and the SunsetClause. We’ve been involved in this journey from the very beginning, and it’s been a privilege to see its growth, not just in terms of investment returns, but most critically in its job creation, economic stimulation, and in giving SME’s access to capital they otherwise never would have had.

The decision cuts the potential of this innovative alternative asset class at the knees.

We remain committed to our client’s, investors and supporters, and encourage all stakeholders to make best use of this FINAL WINDOW to contribute to building back our pandemic-ravaged #economy through investment where it matters most.