SECTION 12J CALCULATOR
WHAT IS A SECTION 12J INVESTMENT?
A Section 12J investment provides the investor a unique opportunity to invest in a tax-deductible investment vehicle.
Essentially, in an effort to afford small and medium-sized entities in the South African market equal access to equity funding, the South African government has added Section 12J to the South African Income Tax Act as a catalyst for equity funding for SMEs, specifically because SMEs have been identified as one of the primary contributors to projected future economic growth.
By investing in a Section 12J venture capital company, the investor not only qualifies for a full deduction of the total investment amount from their taxable income in the relevant tax year, but they are also indirectly supporting the South African economy and supporting the growth of local SMEs.
|Taxable Income - Full year|
|Ring-fenced capital gains available for set-off||-|
|Capital Gains Annual Exclusion - Individuals||-|
|Taxable Capital Gains|
|Capital Gains Tax inclusion rate|
|Capital Gains Included at inclusion rate|
|Section 12J Deduction||-|
|Taxation on Taxable Income|
|Rebate (Individuals only)||-|
|Tax credits (Medical, etc.)||-|
|PAYE deducted (Individuals only)||-|
|Provisional 1 Paid||-|