12J - Interim Dividend Declared, So What's Next?

by Johannes Maree


Dividends

I'm still on a high after watching the Springboks' massive win over the weekend.  What a game!  What a turnaround in 18 months!  Well done Rassie, Siya and the rest of the boys!  It's just reminded me again that we have so many positives in this beautiful country of ours. 

One of those positives, coming back to business, is the Section 12J Tax allowance – SARS'way of incentivising the South African Taxpayer to invest in our economy.  As you probably already know, we've decided to partake in that sector, as we believe it to be a great opportunity to make a positive difference in this country.

INTERIM DIVIDEND PAID

So, Destinata Capital Ltd, our very own Section 12J Fund, recently declared a 5% interim (bi-annual) dividend to its shareholders.  Annualised that is 10%, which exceeds the 8% target initially set.  Many of our shareholders opted to have their dividends reinvested to obtain further tax-deductible 12J share investments.  Remember – a Section 12J investment is 100% tax deductible for ANY SOUTH AFRICAN TAXPAYER, even salaried employees, therefore an effective return of up to 45% through tax reductions or rebates is earned upon making the investment, depending on which tax bracket the investor falls into.  All dividends and capital growth earned are in addition to that initial return. 

Now, typically one would need a minimum of R1m to make such an investment, as it is a Companies Act requirement.  Destinata Capital Ltd, however, is a publicly incorporated entity that issues prospectuses from time to time, which removes that specific requirement – allowing investments of as low as R100 000 per investor.

For those who haven't seen it yet, here's the link to our YouTube explainer video:

 https://www.youtube.com/watch?v=iO97ELuEsHU&t=123s

Our latest prospectus window closed on 15 October 2019, with many investors grabbing the opportunity.  The next prospectus is planned to run from either November or December 2019 to February 2020, to allow taxpayers to invest before the end of the current tax year and thereby making full use of the incentive. 

OUR INVESTMENTS

The fund focuses on investments in security, hospitality and renewable energy.  Our security investment, Secure Rite Security (Pty) Ltd (visit https://securerite.co.za/), currently being our best performing investment.

On the hospitality side we recently added this stunning Airbnb apartment in De Waterkant, Cape Town, to the portfolio.  If you're planning on visiting the Mother City during the holidays you might want to book this one quickly, as it's only gone live on Airbnb very recently, but has already generated multiple bookings over, not only the festive season, but also the months on either side thereof.  To view, click on the link below:

https://www.airbnb.com/rooms/39656058?source_impression_id=p3_1572271553_FNNQNxv%2BOYzUEGZJ

 or why not take a guided tour with African Wine Adventures, the tour operator we've backed.  I've heard Jakes Lombard, who guides the bulk of the tours, is one of, if not the best, in the business!  Check out their Facebook page on the link below:

 https://www.facebook.com/AfricanWineAdventures/

Our renewable energy investment, DC Go, has also been performing well, and has made a massive difference to the lives of many South Africans, who previously did not have access to the basic service of electricity. If you want to know more, follow this link:

https://www.dcgo.today/

We have a lot of things in this country to be thankful for – we just need to open our eyes to see them. 
Ngiyayithanda iNingizimu Afrika.

The contents hereof should not be construed as investment, tax, legal, accounting and/or other advice. For advice on these matters consult your preferred adviser. Destinata Capital Ltd (VCC-0073 FSP 48729) is an authorised financial services provider and is a SARS approved Venture Capital Company.

For more information, contact us on info@destinataholdings.com / 021 851 3590 or visit www.destinatacapital.com




 
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