Cape-based investment property specialists, Flyt Property Investment, have made investment into hospitality property accessible for future projects via their Section 12J finance-facility fund, the Flyt Partnership 2022 fund. Subscription to the fund will provide investors access to the Section 12J tax-break before the 30 June cut-off, and allow them to park the funds while they wait for new projects to come on board.
Investors wanting to invest in Section 12J still have until 30 June to invest before Treasury’s sunset clause on this South African tax incentive takes effect. This is what you need to know before investing in Section 12J for the last time.
As the section 12J tax dispensation draws to a close at the end of June, Renier de Wit, investment specialist, takes stock on how it contributed to South Africa’s investment landscape and how these fund managers can support the country’s developmental needs.
In a country where sadly all too often hard-earned taxpayer money is often wasted or stolen through corruption, it would not be surprising for taxpayers to want to withhold their tax contribution. Thankfully, this is not the case in South Africa, as there is still an overwhelming desire amongst citizens to building the country and a commitment to helping it improve and grow.
Many last-minute investors kept the Section 12J sector burning the midnight oil as the 28 February tax deadline drew near, with some fund managers recording a significant increase in capital raised. Treasury’s recent announcement that the incentive will not receive an extension was clearly a catalyst for many taxpayers to make the most of the opportunity for the penultimate time.
In the 2021 Budget Review tabled with Minister Mboweni’s budget speech yesterday, Treasury announced that Section 12J of the Income Tax Act will not be extended past its sunset date of 30 June 2021. Parliament is now faced with the decision whether to accept Treasury’s policy and not extend Section 12J, or take an alternative course of action.
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