Provisional Taxpayers – how to lower your 2024 tax bill with Section 12B

*This content is brought to you by Jaltech

As a provisional taxpayer, the February deadline looms large, bringing with it the weight of another tax payment. But before you resign yourself to the inevitable, consider making a Section 12B investment – Jaltech’s latest tool that can significantly reduce your tax liability.

What is Section 12B?

This tax incentive encourages investment in renewable energy projects by offering an accelerated tax deduction. But, you can deduct 100% or 125% of your investment from your taxable income, lowering your tax bill. But you would need to do this quickly. 

Benefits for Provisional Taxpayers:

  • Immediate Tax Reduction:  Section 12B allows you to claim the full deduction in the year you invest, meaning a lower tax payment in February.
  • Enhanced Cash Flow: By reducing your tax liability, you free up capital that can be invested elsewhere.
  • Earn long-term income: You’ll earn income from the investment for ten years. 
  • Support Sustainability: You’ll invest in environmentally friendly projects, contributing to a greener future while reaping financial benefits.

How Does it Work?

Section 12B offers a 100% or 125% deduction on qualifying investments in solar assets. This means that you can sometimes deduct more than the actual amount you invest, significantly reducing your taxable income.

Examples:

  • Invest R1 000 000, and you can deduct up to R1 250 000 from your taxable income, saving you up to R560 000 in taxes. 

How to participate 

Jaltech is presenting taxpayers with one of the last opportunities in the market to capitalise on the Section 12B tax incentive before the tax year concludes.

Jaltech is currently in the final phases of raising R90 million to acquire an existing portfolio encompassing over 50 operational solar systems. This strategic acquisition not only allows investors to benefit from the Section 12B incentive but also offers an additional layer of assurance. The solar systems in this portfolio are actively generating electricity and boast a proven track record of performance.

For taxpayers with income tax or capital gains tax liabilities, click here to complete Jaltech’s enquiry form, and a representative from Jaltech will promptly reach out.

Jonty Sacks & Chris McCormick – Jaltech Fund Managers 

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