Ventureburn will be hosting our first-ever free webinar series with the first session taking place on 1 September 2020.
Hosted in partnership with Kalon Venture Partners, a registered Section 12J Venture Capital Company, these informative webinars will offer insight into everything you need to know about Section 12J.
The webinar will take place on 1 September 2020 at 11am
Hosted by Ventureburn editor, Ishani Chetty, and venture capitalist Clive Butkow of Kalon Venture Partners, the webinar series will unpack the key elements of Section 12J.
Our first webinar topic will be covering a foundational understanding and the possible impending legislation changes of Section 12J.
Our first webinar will feature special guest, Tanya van Lill, CEO of Southern African Venture Capital and Private Equity Association (SAVCA). Van Lill will offer more insight into whether the Section 12J legislation is going to be extended beyond the sunset clause in 2021.
The webinar will last 45 minutes to one hour and attendees will be able to post their questions in the Zoom chatroom as we end off with a fire chat question and answer session.
Date: 1 September 2020
What is Section 12J?
A Section 12J investment provides the investor with a unique opportunity to invest in a tax-deductible investment vehicle.
GetFundedAfrica’s mission is to uplift people and economies in Africa through entrepreneurship; helping companies find funding, grow, create jobs and solve society’s greatest challenges
In an effort to afford small and medium-sized entities in the South African market equal access to equity funding, the South African government has added Section 12J to the South African Income Tax Act.
Section 12J acts as a catalyst for equity funding for SMEs, specifically because SMEs have been identified as one of the primary contributors to projected future economic growth.
By investing in a Section 12J venture capital company, the investor not only qualifies for a full deduction of the total investment amount from their taxable income in the relevant tax year, but they are also indirectly supporting the South African economy and supporting the growth of local SMEs
By way of illustration: if an investor invests R 1-million into a Section 12J VCC (assuming a maximum marginal tax rate for an individual), the investor will receive a tax credit of R 450 000 on the submission of their tax return for the year in which the investment is made. Effectively an investor’s risk exposure will be 55% while earning a return on 100% of their investment.
In this episode of GFA-Attract, we discuss with Kennedy Mubita, Nairobi based Venture Capital Lead for Africa & Middle east at SC Ventures, the venture capital arm of Standard Chartered Bank. SC Ventures is a $100 million fund focused on FinTech investments.