© 2017 KNF Ventures.

  • Twitter Social Icon

SARS s12J VCC

To assist SMEs with access to equity finance, government has implemented a tax incentive for investors in privately owned entrepreneurial businesses in South Africa. Individuals, companies and trusts (any SA taxpayer) investing through approved section 12J venture capital companies like KNF can deduct the full amount of their investment from taxable income in the tax year that the investment is made.

How it works

(1)

(2)

(3)

(4)

(5)

(6)

(7)

Qualifying Investors (SA taxpayer e.g. individuals, companies, trusts) invest in KNF
In exchange for shareholding in KNF by way of share issue
KNF provide investor certificates to investors
Investors claim amounts incurred on acquiring KNF shares as a deduction from taxable income
KNF invests in qualifying unlisted South African investee companies 
In exchange for non-controlling shareholding (company may not be a controlled group company)
Investors start the investment process in a favourable IRR position due to the immediate tax benefit