WELCOME TO
INFINITY INVESTMENTS
VENTURE CAPITAL (Pty) Ltd

VENTURE CAPITAL COMPANIES SHARES (VCCs)

One of the main challenges to the economic growth of small and medium-sized businesses and junior mining exploration is access to equity finance.
To assist these sectors in terms of equity finance, government has implemented a tax incentive for investors in such enterprises through a Venture Capital Company (VCC) regime.
The VCC is intended to be a marketing vehicle that will attract retail investors. It has the benefit of bringing together small investors as well as concentrating investment expertise in favour of the small business sectors.
Investors (any taxpayer) can claim income tax deductions in respect of the expenditure incurred in exchange for VCC shares.

AN OVERVIEW OF HOW IT WORKS

Qualifying Investors will invest in approved VCC’s in exchange for the issue of Venture Capital Shares and investor certificates. Investors can claim tax deductions in respect of their investments in an approved VCC.

The approved VCC will, in turn, invest in qualifying investee companies in exchange for qualifying shares.

The VCC will invest in screened SMES with big growth potential and secure business practices which merges with the values of Infinity Investments Venture Capital Company.

• 12J refers to a section of the income tax act that provides a dispensation for Investors to write off a portion of an Investment equal to their taxable income rate for organisation investment into a 12J company.

This means that if you, as an individual, have an income rate equal to the maximum rate of 45%, and make a R10 million investment into Infinity Investments Venture Capital Company, SARS will allow you to write off the equivalent of 45% of that investment – or R4.5million against your tax liability in the year that you make the investment.

Qualifying Investors will invest in approved VCC’s in exchange for the issue of Venture Capital Shares and investor certificates. Investors can claim tax deductions in respect of their investments in an approved VCC.

The approved VCC will, in turn, invest in qualifying investee companies in exchange for qualifying shares.

The VCC will invest in screened SMES with big growth potential and secure business practices which merges with the values of Infinity Investments Venture Capital Company.

Click here to learn more

• 12J refers to a section of the income tax act that provides a dispensation for Investors to write off a portion of an Investment equal to their taxable income rate for organisation investment into a 12J company.

This means that if you, as an individual, have an income rate equal to the maximum rate of 45%, and make a R10 million investment into Infinity Investments Venture Capital Company, SARS will allow you to write off the equivalent of 45% of that investment – or R4.5million against your tax liability in the year that you make the investment.

WHO QUALIFIES TO BE AN INVESTOR?

Any taxpayer qualifies to invest in an approved VCC.
Qualifying investors can claim income tax deductions in respect of the expenditure actually incurred to acquire shares in approved VCCs.

Where any loan or credit is used to finance the expenditure in acquiring a venture capital share and remains owing at the end of the year of assessment, the deduction is limited to the amount for which the taxpayer is deemed to be at risk on the last day of the year of assessment.
No deduction will be allowed where the taxpayer is a connected person to the VCC at or immediately after the acquisition of any venture capital share in that VCC.
On request from SARS, the investor must verify a claim for a deduction by providing a VCC Investor Certificate that has been issued by an approved VCC, stating the amount of the investment and the year of assessment in which the investment was made.

Except in the case of Venture Capital Shares held by a taxpayer for longer than five years, the deduction is recouped (recovered) if the taxpayer disposes of the Venture Capital Shares to the extent of the initial VCC investment (under the general recoupment rules of section 8(4) of the Act)).
Standard income tax and CGT rules apply in respect of VCC shares.

Any taxpayer qualifies to invest in an approved VCC.
Qualifying investors can claim income tax deductions in respect of the expenditure actually incurred to acquire shares in approved VCCs.

Where any loan or credit is used to finance the expenditure in acquiring a venture capital share and remains owing at the end of the year of assessment, the deduction is limited to the amount for which the taxpayer is deemed to be at risk on the last day of the year of assessment.

Click here to learn more

No deduction will be allowed where the taxpayer is a connected person to the VCC at or immediately after the acquisition of any venture capital share in that VCC. On request from SARS, the investor must verify a claim for a deduction by providing a VCC Investor Certificate that has been issued by an approved VCC, stating the amount of the investment and the year of assessment in which the investment was made.

Except in the case of Venture Capital Shares held by a taxpayer for longer than five years, the deduction is recouped (recovered) if the taxpayer disposes of the Venture Capital Shares to the extent of the initial VCC investment (under the general recoupment rules of section 8(4) of the Act)). Standard income tax and CGT rules apply in respect of VCC shares.

WHAT MAKES US
DIFFERENT?

GROWTH

Infinity Investments Venture Capital Company strives to generate significant positive cash flows and earnings, which increases at a much faster rate than the overall economy.

PROSPERITY

Infinity Investments Venture Capital Company focuses on maintaining a state of good fortune and successful social status through investing time and money in our expansive network of clients and investors.
Infinity Investments Venture Capital Company will ensure prosperity through keeping our finger on the pulses of our investees.

Infinity Investments Venture Capital Company focuses on maintaining a state of good fortune and successful social status through investing time and money in our expansive network of clients and investors.

Click here to learn more

Infinity Investments Venture Capital Company will ensure prosperity through keeping our finger on the pulses of our investees.

INTEGRITY

People often define integrity as doing the right thing even when no one else is around. Infinity Investments Venture Capital Company has the ability to act with honesty and be consistent in our business ethics and morals.

SUBSIDIARIES AND PROJECTS

E

Infinity VCC

E

Infinity Global

Contact us

+27 72 576 0217

Gerber@infinitygroup.co.za

Address

Corner of Corobay Ave
and Garsfontein Drive,
Glen Forum Building,
2nd floor,
Pretoria

8 + 5 =

FSP Number: 48974
VCC Registration Number: 0086

Disclaimer: The content in this document should not be construed as investment, tax, legal, accounting and/or any other advice. For advice on any of these matters, it is recommended that you consult your preferred relevant advisers.