BBBEE structures driven through commercial sustainability
The starting point for any legal or tax structure should be a commercially viable transaction with long term sustainability and empowerment objectives. We use BBBEE structures to assist Corporates and Private Companies achieve these objectives.
100% Tax deductible
All contributions are 100% Tax deductible in accordance with Section 12J of the Income Tax Act, simply meaning, that the business saves an immediate 28%. All SARS and FSB compliance are undertaken by Futureneers™ B4i without the need for the Corporate or Private Company to register, run and manage their own Section 12J Venture Capital Fund.
All contributions qualifies for BBBEE ESD scorecard points
Our unique funding structure enables Corporates and Private Companies to utilise Enterprise and Supplier Development ("ESD") contributions for funding its BBBEE initiatives. Over and above the 100% tax deduction, 70% of all contributions will qualify for ESD BBBEE scorecard points on an ongoing basis while the investment is retained.
Ongoing support and compliance while being part of the B4i network
The Futureneers B4i Empowerment offering not only includes an initial setup and structuring of the transaction, but ongoing help with compliance and business growth support. As part of our offering, we connect each participating company to the B4i network with an ultimately objective of generating long-term additional commercial benefits through every transaction undertaken.
How It Works
Structured BBBEE that qualifies for a tax deduction and ESD scorecard points
Setup, Funding and Structuring
We assist our partners to identify opportunities where BBBEE can be used to further their commercial and empowerment objectives. The transaction is then structured within the Futureneers B4i Empowerment framework to maximise benefits and address key long-term goals.
Initial Tax and ESD Benefits
As a registered section 12J vehicle, each transaction is 100% deductible for Income tax purposes - leading to an immediate 28% saving for every participant. In addition, the transaction is funded from ESD Budgets and 70% of contributions qualifies for BBBEE ESD points.
Ongoing ESD Benefits
While the investment in Futureneers B4i Empowerment is retained, all initial funding (and top-up payments should it be required) will qualify for 70% ESD contributions every year - even without making additional payments to the structure every year.
As already mentioned, a key part of the B4i empowerment model is connecting participating companies to other industries or commercial opportunities using BBBEE as strategic catalyst - with the ultimate aim to generate additional commercial benefits and long term, sustainable empowerment.
Futureneers B4i Empowerment RF (Pty) Ltd is a registered Financial Services Provider (FSP no. 47705 ) and registered Section 12J Venture Capital Company (VCC-0053).
TERMS AND CONDITIONS
(1) Futureneers B4i Empowerment RF (Pty) Ltd ("the Company") offers Corporates and Private Companies the opportunity to participate in its BBBEE ESD programs through making a minority investment in its ESD Fund or participating via ESD structured Loans, for which the contributing companies may receive ESD Scorecard recognition, a tax deduction in accordance with Section 12J and be issued equity in the fund.
(2) The main objective of the Company is not to maximise financial return for investors, but to promote and execute its BBBEE empowerment objectives, ensure participants maximise their BBBEE Scorecard points, receive a tax incentive, and further equity benefits as described herein, while at the same time promoting its sustainable black empowerment model and developing black entrepreneurs.
(3) The Company is a registered and authorised financial service provider (FSP registration number 47705) and a registered Section 12J Venture Capital Company (SARS registration number VCC-0053).
(4) Please further note that an investment in Futureneers B4i Empowerment RF (Pty) Ltd is by invitation only and not available as an offer to the public. Only companies wishing to participate in the Company's Enterprise and Supplier Development programme will qualify for potential investment after pre-screening. To enquire about participating in our ESD programme, please complete the contact us form on our website and we will put you in touch with one of our senior executive and FCSA registered representatives.
(5) All potential benefits and savings referred to on this website relate to a potential income tax saving should the investors deduct their full investments for income tax purposes in accordance with section 12J of the Income Tax act, assuming the client is a company being taxed at the current corporate tax rate of 28%, and assuming the investment is made in qualifying entities and the Investor qualifies for the tax benefit, and BBBEE benefits assuming all relevant conditions of the BBBEE Codes are met.
(6) This website is for information purposes only. Should you require further information about participating in our ESD programme, please contact one of our registered and authorised representatives (details on the website).
(7) DISCLAIMER: The content provided on this website does not constitute as solicitation, guidance, proposal, invitation or investment recommendation or advice, and prior to considering such an investment, we recommend prospective investors seek specialised BBEE, financial, legal and tax advice.