100% Tax Deduction means only 72% Risk Exposure
On an investment that brings you an immediate ESD scorecard recignition
Registered Section 12J Company
Registration number: VCC-0053
Contributing Companies in Futureneers B4i Empowerment receives 100% of the upside, with only 72%* (assuming a 28% corporate tax rate saving) capital risk exposure.
Section 12J of the Income Tax Act was created specifically to encourage taxpayers to invest in SMEs. Taxpayers who therefore invest in a Venture Capital Company (VCC), registered with the South African Revenue Services in accordance with Section 12J of the Income Tax Act, are entitled to a full tax deduction on monies invested.
For Contributing Companies this means an immediate return of up to 28% (being the reduction in taxes payable or recoupment of tax already paid in the year of their investments based on a maximum corporate tax rate of 28%). Therefore for every R 1,000 invested R 280 is immediately returned as illustrated by the example below:
