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,
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