For high-income salary earners, Flyt will finance 100% of your investment. For example, say you earn R2,5 million per year (which falls in the 45% tax bracket) and you would like to invest R1 million. Being a salaried employee, your employer already pays tier full PAYE tax obligation to SARS, so you would be due a refund from SARS of R450 000.
For self-employed individuals and entities, you invest your tax amount and Flyt will then finance the remainder so you pay zero tax. For example, say you are self-employed or are an entity and would like to invest R1 million. Being subject to provisional tax, the R1 million invested would mean you avoid paying the R450 000 and only need to pay R532 000, as opposed to R982 000.
Returns are issued during tax season, which runs from 1 March – 28 February the following year, with filing season beginning in July.
If you’re a high-income earner, you receive an immediate refund of 45% on the amount you invested. If you’re self-employed or an entity, you receive an immediate return of 28% on the amount you invested.
The Flyt 12J Hospitality Fund offers the opportunity to invest at a minimum of R1 million.
The Flyt 12J Hospitality Fund offers attractive exit options after five years, with the ability to earn passive income into perpetuity.
The Flyt 12J Fund is the opportunity to subscribe for shares of Flyt Hospitality, a company which invests exclusively in the Flyt property portfolio. The portfolio is a collection of strategically located hospitality properties with a focus on sectional title serviced apartments and student accommodation, most notably the ApartHotel developments.
Initiation Fee: 2% of capital raised
Annual Management Fee: 2% of capital invested
Performance Fee: 10% of dividends declared
Ordinary shares are valued at R100.00 each. However, an increase in the share value – and that of the dividends – is directly related to the capital growth of the properties in the Flyt portfolio.
The purpose of Section 12J is to fund small and medium-sized enterprises that have long-term growth potential, delivering on Government’s ambition to stimulate economic growth and create jobs. As long as growth and job creation remain a priority for Government, Section 12J Funds will remain an investment priority.
Section 12J was written into law and introduced as a provision in the Income Tax Act in 2009 to address one of the challenges to growth for SMEs – accessing finance. Beyond the act, the Flyt Section 12J Fund itself invests exclusively in a property-backed and fully developed pipeline of developments, consisting of 315 units and 525 beds with a total value of R465 million.
A SARS refund is an acknowledgement by the State that those who have contributed meaningfully to the economy or reduced risk by investing in their retirement, should be rewarded or refunded. By investing in a 12J Hospitality Fund, tax payers contribute meaningfully to Government’s ambition of stimulating growth and creating jobs, qualifying them for a reward or tax refund.
Anuva Investment is the Fund Manager of the Flyt Hospitality 12J Fund. Anuva is one of the country’s first and most-established Section 12J funds, with an outstanding track record since inception. Anuva is Flyt’s exclusive 12J partner.
Flyt is the Asset Manager of the Flyt Hospitality 12J Fund. Flyt is a leading Cape-based property group that develops through joint venture and independent projects.
Section 12J of the Income Tax Act – the most efficient tax saving tool, provided by SARS and government that allows you to hold on to your tax cash while investing it wisely.
The section specifically aims to help the growth of small and medium sized businesses by increasing their access to equity finance. To attract investors into this typically under-funded sector, which is imperative for driving economic growth, SARS has written Section 12J into the Tax Act, which offers taxpayers a 100% tax deduction in the year of investment if they invest in SMMEs by way of subscription of shares in a Section 12J Venture Capital Company.
Flyt’s Section 12J compliant property developments give investors the full 12J tax deduction, allowing them to put this saving/refund towards their property purchase. This means that SARS will effectively fund up to 45% of the purchase price of the property.