February has come and gone, and so too has the 2020/2021 financial year.
If that is news to you, then I am rather jealous of the existence you lead. It must be nice.
As the financial year drew to a close, we were also ‘treated’ to Finance Minister Tito Mboweni’s budget speech, and there was plenty in there to unpack.
For one, he announced that the government is killing Section 12J tax breaks for venture capital investments from the beginning of July 2021, which has been met with fierce pushback from all sides.
Having spurred investment in excess of R4 billion into more than 300 small, medium, and micro-sized enterprises (SMMEs) in South Africa, killing Section 12J seems counterproductive at best.
Lost in the noise, for those who aren’t all that familiar with what Section 12J entails, is the fact that just because it won’t be renewed, doesn’t mean it’s over.
In fact, there is still one last bite at the cherry, so forget about missing out in the last financial year and start thinking about how to maximise what lies ahead.
Let’s get the basics via Flyt Property Investment, which is Section 12J compliant:
SARS has written Section 12J into the Tax Act, which offers taxpayers a 100% tax deduction in the year of investment if they invest in SMMEs by way of subscription of shares in a Section 12J Venture Capital Company.
Flyt’s Section 12J compliant property developments give investors the full 12J tax deduction, allowing them to put this saving/refund towards their property purchase. This means that SARS will effectively fund up to 45% of the purchase price of the property.
This means you can get a tax refund of up to R450 000 for every R1 million invested in Flyt’s property developments.
Following Mboweni’s announcement, Flyt sold out all three developments in Cape Town and Stellenbosch (some 155 units). As a result, it will be launching new developments in April, which are expected to sell out very quickly.
Rather than wait for that last-minute rush, and risk missing out, register your interest here now and you’ll be kept up to speed as developments are announced.
You know you’re going to be hit with a tax whack at the end of the 2021/2022 year, so plan for the future and shield yourself from the tax you haven’t paid yet.
There are also experts from Flyt ready to run you through every step of the process, so that you understand the ins and outs of maximising your tax deduction.
A helping hand from the taxman doesn’t come around often, and Section 12J is no more from July 1, so there’s no time like the present.
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