Capital Archives - T Roos | Dinamiese Belasting- en Rekenmeestersfirma

June 3, 2020

Published by client-admin at June 3, 2020

Managing your startup capital

Becoming an entrepreneur is not as easy as waking up with an idea and having money thrown at you to turn it into a reality. Most successful entrepreneurs share the same sentiments – it takes many rejections and disappointments, and plenty of restarts. There are two things this article will explore; how to get startup capital, and how to manage it. 1. How to get the startup capital Your drive to become an entrepreneur should not be derived from wanting to have exactly what another entrepreneur has achieved. By virtue of your business idea being different, an opportunity to succeed […]

April 7, 2016

Published by Admin at April 7, 2016

VENTURE CAPITAL COMPANIES – GETTING A TAX DEDUCTION FOR INVESTING

In a bid to encourage financial support for entrepreneurs (or so-called ‘angel investing’), National Treasury introduced section 12J of the Income Tax Act, 58 of 1962. Effectively, section 12J allows as a deduction for income tax purposes any investment by a taxpayer in the shares of a venture capital company (‘VCC’). In other words, taxpayers are allowed a deduction equal to the amount of the share investment made in the VCC. This a significant concession. The legislation in turn requires these VCC’s to only invest in ‘qualifying companies’, being in essence companies that have ‘real’ businesses behind them (in other […]