FLYT
These days it seems as though every financial news channel that you open is talking about Section 12J investing . This means investors are finally realising the benefits of the tax incentive that was introduced back in 2009 by SARS and the South African Treasury .
The South African Revenue Service ( SARS ) is giving all South African taxpayers the opportunity to write off up to R2.5million in taxable income ( R5million if you are a company ) in the 2022 tax year ! Its important to note that if you have paid the tax on the income already you will get a full tax refund ( in your bank account ), and if you are yet to earn the income you will avoid paying tax on the future income .
Section 12J specialists , Flyt Property Investment unlocks this tax saving when you invest in one of their property developments through their Section 12J Fund . Here , you decide whether you want to own a specific property outright or want to partner with Flyt on a group of properties . You do not need to invest your own money Flyt provides up to 95 % finance to facilitate your tax break which is then settled using a combination of :
1 . Your tax refund ( up to 45 %) - SARS will put down your deposit for you ! 2 . A conventional home loan / cash
Remember , you have only until 30 June 2021 to take advantage of the opportunity , any later and you cannot claim your tax back !
Taking Flyt What started as an exploratory exercise in 2019 to see how to combine their “ bread and butter ” expertis , that being ( residential / hospitality property development ) with SARS ’ s Section 12J tax incentive has since morphed into a flourishing joint venture with Anuva Investments , South Africa ’ s first and now leading Section 12J Venture Capital Company .
“ You have only until 30 June 2021 to take advantage of the opportunity .”
Since the launch of their Flyt Select , Partnership and Hospitality Funds in early 2020 , again st all odds and in unprecedented conditions for the property market , Flyt have cemented themselves as Section 12J property investment forerunners . Their innovative team has succeeded in developing a bridging finance business , sell out all four of their developments in the market ( more than 295 units ), forming trusted relationships with approximately 400 new individual investors , all the while , saving an of excess of R200 million in investors tax in the process .
As proud as they are of the progress they have made , they believe that very little of it would have been possible without what Anuva Investments ’ CEO , Neill Hobbs describes as “ hands down the best taxsaving opportunity imaginable ”.
What is Section 12J ? Section 12J of the Income Tax Act is an incentive created by SARS and National Treasury aimed at boosting much-needed job creation in South Africa through Venture Capital Companies ( aka Section 12J companies ). By virtue of investing into one of these 12J companies , investors will receive a deduction from SARS against their taxable income to the tune of their
SA Real Estate Investor Magazine MAY 2021 7