12 Mar Is time running out to take advantage of the 12J tax incentive?
Section 12J, one of the most talked about tax incentives in recent years, remains open to investors, but time may be running out to take advantage of this attractive opportunity, says Jonathan Whittaker, Head of Distributions at TBI Investment Managers (Pty) Ltd.
Introduced in 2009, the incentive encourages investment in South African SMEs and entitles investors to deduct the expenditure incurred against their taxable income. The annual allowable deduction is currently capped at R2.5 million for individuals and trusts, and R5 million for corporate investors.
“For the astute investor this offers attractive additional tax relief, as many investors simply rely on the deductions from their Retirement Annuity contributions, capped at R350,000 per annum,” says Wynand Marais, CEO of Ora Capital Limited.