Why invest in Section 12J for Hospitality
Section 12J is a tax incentive that was introduced by Treasury to encourage South African tax-payers to invest into various sectors within the South African economy and receive a 100% tax-deduction the their investment. The South African Tourism sector has been identified by South African government as a priority sector for employment opportunities and economic growth. According the the World Travel and Tourism Council, in 2018, the total contribution of Travel and Tourism to South Africa’s GDP was estimated at R412.5 billion and is forecast to grow to R598.6 billion by 2028.
Euphoric Capital is a registered and approved Section 12J VCC that allows South African tax-payers to invest into various hospitality opportunities and receive a 100% tax-deduction on their investment. The returns seen in this sector coupled with Euphoric Capital’s industry knowledge and the Section 12J tax deduction are set to provide investors with enhanced returns throughout the investment period. As an investor in Euphoric Capital, you can take comfort in the fact that you are positively contributing to the growth of the tourism sector and creating employment opportunities in the process.
Who is Euphoric Capital?
A Section 12J Hospitality Platform
Euphoric Capital is a registered and approved Section 12J Venture Capital Company that:
Allows you to:
- Direct your funds invested in Euphoric Capital to be invested in a qualifying hospitality investment;
- Receive a 100% tax-deduction on your investment; and
- Receive all the economic benefits associated with your selected investment opportunity.
Provides a turnkey solution so that you have peace of mind that:
- You will be exposed to hospitality income through short-term guest bookings;
- The investment is managed for 365 days a year by dedicated professionals; and
- The investment will maintain compliance with Section 12J through Euphoric Capital’s regulatory framework.
Allows you to support your investment by:
- Utilising the underlying properties, at a market related rate, while benefiting from the profits generated by the underlying properties.
- Promoting the the use of the underlying properties in your selected investment to increase occupancy and turnover of the overall investment.
The Section 12J Opportunity
The South African Government has implemented a tax incentive for investments into Section 12J Venture Capital Companies (Section 12J VCCs), to encourage private investment in various sectors including hospitality.
Any South African taxpayer can deduct 100% of their investment from their taxable income, in the tax year in which the investment is made.
This results in enhanced returns for investors as they benefit from 100% of the capital while reducing their exposure (by up to 45%) through the tax-deduction provided by SARS.
Jaltech is a boutique financial consulting firm. Jaltech has developed a niche in the South African market in assisting companies, family offices and high net-worth individuals with forming and managing all aspects of Section 12J VCCs.
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