The Section 12J Investment Process
SARS has defined the Section 12J Investment Process as follows:
The steps are:
1 - Qualifying Investors will invest in approved VCC’s
2 - The approved VCC will issue Venture Capital Shares and investor certificates to the Investor. Investors can claim tax deductions in respect of their investments in an approved VCC.
3 - The approved VCC will, in turn, invest in qualifying investee companies.
4 - The qualifying investee company will issue qualifying shares to the approved VCC