Prospectus 1 of 2019 Now Open

by Johannes Maree


Do you want to pay as little as zero tax?

Of course you do! See the video on the link below to learn more:

I am happy to announce that the window for Prospectus 1 of 2019 is open until 15 October 2019. Why is this significant? It allows you to invest an amount below the normal threshold of R1m required by the Companies Act. Investments down to R100 000 are accepted.

The individual tax season has also commenced, which means many of our investors who made use of the incentive before the end of the previous tax year, will now receive their refunds from SARS. These refunds can also be used to reinvest in a Section 12J VCC and again claim a tax deduction. That's an additional tax deduction claimed by using funds you are receiving from your previous 12J deduction claimed, that's awesome!

There will be another prospectus ending 28 February 2020, so why should you consider investing during this current window?

For 2 reasons:

  1. Dividends: The shares you purchase during this window will be included in the dividend distribution that is planned for before the end of February 2020. Investors who invested before 28 February 2019 will be included in the dividend distribution planned in August. We target to pay dividends bi-annually.
  2. Share price: Though not guaranteed, the share price might increase before the next prospectus window opens.


A quick recap to those who are not familiar with the Section 12J VCC concept:

In order to incentivise investment, SARS offers the taxpayer a 100% tax write-off for investments into a Section 12J Company, the vehicle used to pool investor funds and invest in the SME sector. Yes, you heard right, a 100% tax-write off.

This means that an investor can realise up to 45% in immediate returns upon investment through tax savings. In addition, the investor will earn a targeted 8% per annum in dividends and also potential capital growth on their investment.

Let's look at this example:

Two taxpayers, A and B, each have R1m in taxable income and fall in the 45% tax bracket. A invests the R1m in a Section 12J Fund and gets a R1m tax deduction, which means he will PAY NO TAX. B doesn't invest in a Section 12J Fund, gets no tax deduction and therefore has to pay R450 000 in tax. Who do you think is the savvier investor?


  1. Read the prospectus:
  2. Fill out an application form and send it to
  3. Deposit funds as indicated on the application form.
  4. Use your 12J Certificate to claim your full investment as a 100% tax deduction.

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 Pty Ltd (VCC-0073 FSP 48729) is an authorised financial services provider and is a SARS approved Venture Capital Company.

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