ABOUT 12J

Treasury is incentivising South African taxpayers to invest in the local economy, via a tax deduction on the investment amount provided the investment is made into an approved Section 12J Venture Capital Company, like the Infinity Anchor Fund. The benefit to the investor for making the investment in the Infinity Anchor Fund, is a return on the investor’s full investment and a tax deduction on the amount invested.

Description Individual / Trust Corporate
Initial Investment R 1 000 000  R 1 000 000
Maximum Tax Relief (R 450 000) *  (R 280 000)
Net investment (Risk Capital)  R 550 000 R 720 000

*If an investor (an individual in the highest tax bracket) invests R1 000 000 in the Infinity Anchor Fund, the investor will receive a tax credit of up to R450 000 at the end of the tax year. What this means is that an investor will receive a return on 100% of their investment but only have exposure of 55% of their original investment amount.

STRUCTURE

A – Investor invests into VCC

B – VCC issues investor with VCC share certificate and tax certificate

C – VCC capitalises investee companies

D – Investee companies pay dividend to VCC

E – VCC pays dividend to investors

F – Investor submits tax certificate to SARS (if requested)

G – SARS refunds investor (if applicable)

H – VCC appoints a fund manager to oversee compliance and investments in exchange for a fund management fee

WHY INVEST?

An Investor investing into Infinity Anchor Fund can significantly shield their income from tax while earning attractive yields

An investment into Infinity Anchor Fund is well suited for:

  • Investors seeking a lower risk investment, yielding an attractive semi-annual dividend return
  • Investors with high tax burdens
  • Shielding sale of assets from capital gains tax
  • Shielding incentives and bonuses from income tax
  • Diversifying investment returns
    • Section 12J returns are generally uncorrelated to equity and debt markets
    • Investors seeking stable inflation beating returns