Business

VC incentive times out

The section 12J tax incentive scheme, designed to boost investment in startups and SMEs, is coming to an end. What does this mean for the SA startup and venture capital scene?

19 April 2021

Venture capitalists believe the government was wrong to can a venture capital tax incentive, even though it fuelled mainly investments in things like property and asset leasing companies and not small businesses as it was intended to do.

It comes after the National Treasury announced in February that it would not extend the incentive that forms part of Section 12J of the Income Tax Act and is due to end in June 2021.

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