Claim a tax rebate of 28% on the value of renewable energy projects – South Africa
Jaltech financial consultants has developed an attractive tax structure for EPCs and developers in the renewable energy sector.
Effectively the EPCs and developers or their customers will be entitled to claim a tax rebate of 28% on the value of the renewable energy project.
This discount will allow the EPCs and developers to be more competitive in the South African market.
In addition, the structure can be formed so that investments attracts ED or SD points.
The tax structure is formed in line with Section 12J of the Income Tax Act, and requires the formation of a Section 12J Venture Capital Company (Section 12J VCC).
Tax incentive structure associated with Section 12J was introduced by Treasury to promote venture capital investments and stimulate growth and job creation in the South African economy.
Aim is to encourage investment into ‘qualifying investments’ and in turn, the investor receives a full tax deduction for the investment,