FWJK SECTION 12J INVESTMENT


The South African Government is incentivising taxpayers to invest in local companies via Section 12J of the Income Tax Act with a 100% tax deduction on the value of their investment. To date, South Africans have invested an estimated R10 billion into the 12J sector. You not only receive the tax benefit but also the return on your full investment.
With innovative tax concepts and thorough compliance of the regulations, FWJK and our partners, Anuva Investments 12J Partners have created an efficient tax structure whereby your Tax refund pays for up to 45% of your apartment. This equates to a 40% Annualised Return on Equity, based on original apartment purchase price.

EARN A 100% TAX BREAK ON HOSPITALITY PROPERTY INVESTMENT


  • Individual/trust/corporate taxpayers combined into a single investment entity to acquire a specific apartment.
  • Taxpayers to obtain Certificate of Good Standing from SARS.
  • Investors choose their own apartment/s up front in hospitality development to match his/her/personal/corporate tax credits.
  • Up to 45% tax refunded through Section 12J SARS Tax Credits.
  • Investor pays a portion of investment with credits into Sec 12J qualifying company.
  • Sectional title ownership passes to you after 5 years.
  • Tax refunds contribute up to 45% discount on your apartment which is acquired on our co-development at cost basis, equals 45% discount on cost.

12J PROCESS


You choose your apartment equal to your taxable income.

We help you organize a loan and the paperwork for the SARS submission.

A 20% equity deposit is required to secure your apartment.

Both the loan and deposit will move through Anuva Investments 12J Partners and into your new qualifying company (12J requirement).

During construction, SARS will refund you up to 45% of your apartment cost.

At the end of construction, your qualifying company will own a brand-new apartment.

It will be operated as a hospitality apartment by a management company of your choice.

At the end of the 5-year period, ownership of the apartment will vest with you and you may continue to rent, occupy or sell.

INVESTMENT TIMELINE


  • Sign Forms Letter of Good Standing 20% Deposit
  • Sep-2020 Construction Starts
  • SARS Refund Corporates March 2021 Individuals July 2021
  • Sep-2021 Once Construction ends, Hospitality starts
  • June 2025 Once Hospitality ends Sell / Keep Property Purchase further property with profits in the qualifying company name.