Estate Living Magazine New Beginnings - Issue 37 January 2019 | Page 20
P R O P E R T Y
&
I N V E S T M E N T
THE BOULEVARD: THE TAX-SAVVY WAY TO BUY INTO
ZIMBALI
LAKES
RESORT
Investing is risky, so savvy investors need to stick to investment opportunities that offer the potential of
fantastic returns, and are both credible and scalable. This means investing in real businesses, with real
products and value, not simply chasing tax breaks and certainly not following the hype.
Enter Zimbali Capital, an opportunity to invest in hospitality assets at one of IFA
Hotels & Resorts’ (IFA H&R) exclusive developments, including the massive new
multi-billion-rand Zimbali Lakes Resort development on KZN’s north coast – with a
nifty 45% tax break through a Section 12J credit.
WHAT IS A SECTION 12J DEDUCTION?
The Section 12J legislation was introduced to encourage local direct investment in
early-stage businesses. It allows investors (any taxpayer) to claim income tax credit
in respect of the expenditure incurred in exchange for qualifying Venture Capital
Company (VCC) shares.