During June 2018 SARS published a Draft Guide on Venture Capital Companies. The purpose of this guide is to provide users with general guidance on venture capital companies and investments in such companies. It does not delve into the precise technical and legal detail that is often associated with tax and should, therefore, not be used as a legal reference.
For more information follow the link to the guide.
There has been various amendments to Section 12J legislation since inception. Following further proposed draft legislation, Venture Capital Companies will in the months to follow evolve into a different creature it started out in 2009. Treasury and SARS is currently consulting with the Venture Capital industry to iron out amendments which should be concluded by end of October 2018. Treasury was of opinion that 12J is abused without stating the specifics. We trust that an amicable solution will be reached where venture capital will prosper to the benefit of economic growth in South Africa.
Follow the link to the latest proposed tax amendments.
Please contact us and one of our experts will provide you with some guidance