S12J investment is not all that new — it has been around since 2009 when the government introduced amendments to the Income Tax Act to stimulate the private sector and the South African economy as a whole. This introduced tax incentives for investors (individuals and corporates) via tax-deductible s12J companies. For five years, nothing much happened, but following further amendments to the act in 2014, which made the investor’s tax deduction permanent subject to certain strict conditions, the registration of s12J companies started to gain momentum. Today, there are more than 140 registered s12J companies Tax incentives aimed at enticing investors to make funding available to small- and medium-sized entities (SMEs) have resulted in the more than 140 so-called section 12J companies, all vying for your savings. The name comes from section 12J in the Income Tax Act, which was introduced in 2009 to provide for these incentives.

Investors invest a sum of money to acquire shares in ...

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