The 2018 Budget Speech was full of optimism and reassurance but was also filled with amendments as expected.
Undoubtedly, the most expected element was VAT being upped to 15% – the first increase in VAT since 1993.
More relevant to Investors however – and the least surprising element of the budget speech – is that the marginal tax rate did not increase, it remains at 45% – a relatively high percentage, compared to world standards.
This is the perfect opportunity for you to shield your personal tax liability for income tax whether you are an individual, a corporate, or a Trust.
Section 12J VCCs allow investors to deduct 100% of their total investment amount into a VCC, from their taxable income in the year in the investment is made.
Metta Capital takes great delight in the fact that the Minister of Finance also committed R2.1 billion to the creation of a fund, together with National Treasury as well as the Department of Small Business Development, specifically set towards the funding of small businesses intended to create employment for the youth of the country as well as entrepreneurs in general.
In the midst of an upbeat budget speech, imminent political stability, and further resources dedicated to the backbone of South Africa’s economy – the SME sector – the call to rebuild our country’s economy has never been more urgent.
Invest in Metta Capital, a single entry-point into a portfolio of 8 Section 12J funds.