702.co.za: How to pay up to 45% less tax (and save the SA economy while you’re at it)

Posted : 05 December 2018

President Cyril Ramaphosa is on a mission to secure R1.4 trillion in foreign direct investments for South Africa.

Next week Thursday a three-day investment summit kicks off, aimed at reaching Ramaphosa’s target.

Ramaphosa is missing a trick and should look closer to home where R1 trillion is sitting idly on company balance sheets, argues Darryn Faulds, a fund manager at Grovest Group.

Faulds points to Section 12J investments as a pathway to unleash this capital.

The Income Tax Act allows investors into Section 12J compliant Small-to-Medium Enterprises to deduct 100% of their investments from their taxable income.

Potentially, for those in the top tax bracket, it could slash your tax bill by 45%.

The Money Show’s Bruce Whitfield interviewed Faulds.

Listen to the interview in the audio below.