HOT OFF THE PRESSES: Read the launch issue of our Highrise Magazine, in partnership with Anuva Investments.
Cape-based investment property specialists, Flyt Property Investment, have made investment into hospitality property accessible for future projects via their Section 12J finance-facility fund, the Flyt Partnership 2022 fund.
A date with the tax man for any Section 12J investor is a satisfying rendezvous. The morning after SMS is reason for many a refreshing smile; who would’ve thought we’d ever be saying “Thank You, SARS”?
It has been a tumultuous year for the tourism and hospitality industries with each sector being dealt a less-than-favourable hand as a result of the unforgiving Corona epidemic and subsequent lockdown.
With time on my hands, I have been pondering what this pandemic means for property purchasing decisions. Moving into level 2 of lockdown, we have started to see signs of what appears to be normality returning with the face-to-mask ratio increasing, if my morning stop at the local coffee shop is anything to go by.
Co-living, a new-ish take on accommodation, is gaining momentum across the world asan innovative model to embrace – or elbow nudge – that could very well support the newnormal way of living we now find ourselves in, in terms of affordability, accessibility andfunctionality.
If you’re ever feeling a little hard-done-by thanks to SARS, know this: Government has done anoutstanding job of encouraging investment and stimulating job creation (COVID-19 aside) byintroducing some really forward-thinking tax incentives.
HOT OF THE PRESSES: Read the launch issue of our Highrise Magazine, in partnership with Anuva Investments.
Cape-based investment property specialists, Flyt Property Investment, have made investment into hospitality property accessible for future projects via their Section 12J finance-facility fund, the Flyt Partnership 2022 fund.
A date with the tax man for any Section 12J investor is a satisfying rendezvous. The morning after SMS is reason for many a refreshing smile; who would’ve thought we’d ever be saying “Thank You, SARS”?
It has been a tumultuous year for the tourism and hospitality industries with each sector being dealt a less-than-favourable hand as a result of the unforgiving Corona epidemic and subsequent lockdown.
With time on my hands, I have been pondering what this pandemic means for property purchasing decisions. Moving into level 2 of lockdown, we have started to see signs of what appears to be normality returning with the face-to-mask ratio increasing, if my morning stop at the local coffee shop is anything to go by.
Co-living, a new-ish take on accommodation, is gaining momentum across the world asan innovative model to embrace – or elbow nudge – that could very well support the newnormal way of living we now find ourselves in, in terms of affordability, accessibility andfunctionality.
If you’re ever feeling a little hard-done-by thanks to SARS, know this: Government has done anoutstanding job of encouraging investment and stimulating job creation (COVID-19 aside) byintroducing some really forward-thinking tax incentives.
APPLIED INGENUITY
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.
