/ Tax Deduction
Perseus VC1 will assist taxpayers to invest in their registered and approved Venture Capital Company, along with the expert guidance of qualifying investment opportunities and finally ensure the necessary financial management and compliance requirements. We will assist our clients with the acquisition of shares in the VCC, thereby ensuring that they are entitled to a 100% tax deduction on the monies invested. The client will receive a tax credit of up to 45% on their investment.
Section 12J tax deduction illustration:
If an investor, categorised in the highest tax bracket of 45%, should invest R 100 000 in a Section 12J VCC, he or she will receive a tax credit of R45 000 at the end of that specific financial year. The nett effect is that this investor will receive the benefit of a 100% return on investment, with exposure of only 55% of the original investment amount. The tax relief due to the Section 12J investment can be carried over where the investor is a company. Individuals or trusts are limited to the tax year of investment and can therefore not be carried over.
|Description||Individuals or Trusts||Corporates|
|Initial Section 12J investment||R 100 000||R 100 000|
|Tax relief (in the tax year of initial investment)||(R 45 000) – 45% tax bracket||(R 28 000) – 28% tax bracket|
|Net investment (risk capital)||R 55 000||R 72 000|