Section 12J was something that I only came across very recently, and I get the impression that not many people know about this tax efficient way of investing. Basically Section 12J allows you to make an investment into a SARS approved Venture Capital Company (VCC) – and the full amount you invest is tax deductible, with no upper limit. So this may be a good option for those who have maxed out their TFSA, RA and Pension contributions and are looking for something slightly riskier which is fully tax deductible.
I managed to do an interview with someone who made some Section 12J investments last year, and he gave all the details on it. You can read that interview in this blog post.
While doing some research for the blog post, I realised that the information on Section 12J investing is fairly scattered and quite scarce. So I decided to put together a website which would hopefully serve as a “one stop shop” for Section 12J investors. The website contains a directory of SARS approved Section 12J VCC’s, as well as some useful articles and guides. You can check the website here – www.invest12j.co.za
Finally I am curious if any of you had heard of Section 12J before this? Anyone done any Section 12J investing? I would love to hear your thoughts and experiences.