Mad rush to invest as Sars closes rebate door
Incentive to support new small businesses ‘should be revamped’
Hundreds of millions of rands flowed into start-up investments this week as the sun set on section 12J of the Income Tax Act, which gave South Africans a 100% tax rebate on investments made through approved venture capital companies (VCCs) into small businesses.
Introduced in 2009, 12J took off after amendments were made in 2015. However, it had a sunset clause: an expiry date of June 30 2021 for new investments. There were high hopes it would be extended but, in the national budget delivered in February, the National Treasury said 12J had not achieved its objectives of developing small business and creating jobs. Instead, “it provided a significant tax deduction to wealthy taxpayers”...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.