Small Business Focus

How to pay less tax by writing off 100% of an investment in a small business

You can only invest in businesses with an asset value of less than R50 million.

Pavlo Phitidis, Aurik Business Accelerator

There are seven things you need to look out for [when considering investing in a Section 12J business]…

Pavlo Phitidis, Aurik Business Accelerator

Section 12J of the Income Tax Act allows investors to write off 100% of their investment in a registered company from their taxable income.

Towards the end of 2017 there were more than 60 registered Section 12J companies.

There is no cap on how much an investor may invest in a registered Section 12J company.

As long as the investor holds the shares for five years, the initial tax benefit will not be recovered by Sars.

The Money Show’s Bruce Whitfield interviewed Aurik Business Accelerator’s Pavlo Phitidis to discuss Section12j for his weekly small business feature.

Phitidis touched on why and how Section12j was created, as well as the ins and outs of investing into small businesses.

He gave advice on investing in a way that manages risk and return.

Listen to the interview in the audio below (and/or scroll down for more quotes from it).

Debt in a small business isn’t useful...

Pavlo Phitidis, Aurik Business Accelerator

Do you believe in the business? Do you believe there’s a good future for them? Make sure you have some sort of affinity for it.

Pavlo Phitidis, Aurik Business Accelerator

The most difficult thing… is how are you going to exit the small business?

Pavlo Phitidis, Aurik Business Accelerator

Look at the underlying asset class. And look at the fund manager…

Pavlo Phitidis, Aurik Business Accelerator

It’s really hard to liquidate your investment in an SME.

Pavlo Phitidis, Aurik Business Accelerator

Click here (then “like” the page) to follow Bruce on Facebook.

Enter your email address in the form below to receive a newsletter containing the most-read articles of the week from Bruce Whitfield’s The Money Show every Friday morning in your inbox.

Subscribe to our Business Wrap Newsletter


Recommended

by NEWSROOM AI
Read More
How to turn ‘talk’ into ‘walk’ (because vision is nothing without execution)

How to turn ‘talk’ into ‘walk’ (because vision is nothing without execution)

The Money Show’s Bruce Whitfield interviews Aurik Business Accelerator founder Pavlo Phitidis.

How I started a profitable micro-business in no time with only R1000

How I started a profitable micro-business in no time with only R1000

Valerie Pole took R1000 and turned it into a thriving micro-business. She then wrote a book to help others do the same.

Why businesses stop growing (a lesson for entrepreneurs)

Why businesses stop growing (a lesson for entrepreneurs)

The Money Show’s Bruce Whitfield interviews Aurik Business Accelerator founder Pavlo Phitidis.

Woman entrepreneur? How to juggle your business and personal life…

Woman entrepreneur? How to juggle your business and personal life…

Ray White interviews Yiedi CEO Jayshree Naidoo about the special challenges female entrepreneurs face and how to prepare for them.

How to break your business (in order for it to grow)

How to break your business (in order for it to grow)

The Money Show’s Bruce Whitfield interviews Aurik Business Accelerator founder Pavlo Phitidis.

‘Americans are brilliant at consumerism! Brilliant!’ (lessons from the US of A)

‘Americans are brilliant at consumerism! Brilliant!’ (lessons from the US of A)

Bruce Whitfield interviews Aurik Business Accelerator founder Pavlo Phitidis for his weekly small business feature.

Popular articles
[LISTEN] New Visa regulations could change the face of South African tourism

[LISTEN] New Visa regulations could change the face of South African tourism

Lecturer at TUT's Dept of Tourism, Unathi Henama says that the tourism sector is at the center of the economic policies in SA.

'My hubby is 75 and we still do it' - stories about sex on the other side of 50

'My hubby is 75 and we still do it' - stories about sex on the other side of 50

Is biology putting the brakes on your sexuality? Callers share their experiences of sex and growing older.

DStv Premium on a downward spiral, warns tech guru

DStv Premium on a downward spiral, warns tech guru

DStv has lost about 140 000 Premium subscribers to Netflix over the past two years, tech expert Arthur Goldstuck.

17-year-old learner killed teacher for not allowing him to jump the food queue

17-year-old learner killed teacher for not allowing him to jump the food queue

Spokesperson for Education department says the fact that this learner is still in Grade 10 at 17 may indicate there is a problem.

Tell me what you want: Study reveals most common sexual fantasies

Tell me what you want: Study reveals most common sexual fantasies

What are your sexual fantasies? Disclosure can bring sexual freedom, but it can also have downsides. A study lists the top trends.

Transgender 'dragon lady' has ears removed and says testicles are next to go

Transgender 'dragon lady' has ears removed and says testicles are next to go

Tiamat Medusa has undergone extreme body modification and claims to be the most modified trans person in the world.

How Tracey Chambers is helping unemployed moms become entrepreneurs

How Tracey Chambers is helping unemployed moms become entrepreneurs

The Clothing Bank gives women access to discounted merchandise and 500 hours of training in money management and business skills.

3 emergency numbers you should have on speed dial and how they work

3 emergency numbers you should have on speed dial and how they work

These are the emergency numbers you should have on your cellphone and this is what you must understand about how they work.