Government has ended the Section 12J tax breaks for venture capitalSimodisaPortal
One of the only shocks in South Africa’s 2021 national Budget was the unexpected abolishment of the Section 12J tax breaks.
Section 12J of the Income Tax Act affords South Africans a tax rebate if their investments are made through an approved venture-capital company.
The idea was to encourage investments in small businesses and riskier ventures that can help to create jobs and economic growth.
The scheme was introduced in 2008, and was set to expire on 30 June 2021. Experts expected it would be extended, however, Treasury has instead ended the incentive.
Read More: Business Insider SA