Feeling a bit of Section 12J FOMO?
You can borrow the money to invest in a Section 12J fund
Seems everyone wants to get in on the Section 12J action before the 30 June 2021 deadline and secure that all-important 100% tax deduction on their investment. For those of you who feel you are missing out, there is still time, and the means to get your slice of the pie via Anuva Investment’s new loan product.
As Section 12J comes to an end and we consider the benefits to South African taxpayers over the past 12 years that this remarkable incentive has provided, one of its shortcomings was that it was not available to all South Africans. “A big limitation to a Section 12J investment is that you need cash upfront to invest, so in order to save R450 000 in tax, for example, an individual needs to fund R1 million up front, in cash – not so easy to do,” explains Andrew Friedmann, head of sales at Anuva Investments.
Recognising the constraints in making a 12J investment, the team at Anuva put their heads together and along with accredited loan provider Flyt Property Investment have come up with a loan facility that affords qualified investors the option to finance up to 100% of their investment and in doing so has opened up the 12J incentive to a broader base of investor than ever before.
The loan down
Based on an investment of R1million for a 45% taxpayer, here is how the investment finance facility can work for you:
- Anuva arranges up to 100% finance for qualified investors, repayable in instalments ranging from R6k to R9k over 5 years.
- SARS refunds the R450 000 via the Section 12J incentive and the loan immediately decreases to R550 000.
- The loan is further paid off via annual dividends earned from the investment.
- After 5 years, investors will have a fully paid-off investment comprising tax refund, investment returns, and the loan repaid.
“So, you need have no ‘fear of missing out’ on this extraordinary tax-saving opportunity made more accessible via our finance product. It will be the best investment decision you ever make,” says Friedmann.
June presents the final opportunity to make a 12J investment before the incentive expires on the 30th.