Updated Venture Capital Companies list July 2021
An updated Venture Capital Companies list was published.
In 2009, the Government implemented a tax incentive for investors to invest in small and medium-sized business and junior mining exploration companies through a venture capital company (VCC) regime.
As such, section 12J was introduced to the Income Tax Act. The primary incentive herein was that investors were allowed a deduction of the amount invested in VCCs.
Note that the VCC regime was subject to a 12 year sunset clause that ended on 30 June 2021, to the surprise of many.
The 100% tax deduction which was offered by section 12J is now no longer available.
This was as a result of what Treasury perceived as abuse of the incentive and the fact that the section 12J investments were not creating as many jobs as expected.
To see the list of VCC companies, please click here.
23/07/2021
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