|Taxable Income||R 1,500,000||Taxable Income||R 1,500,000|
|Deductions||R 0||Deductions||R 1,000,000|
|Taxable Income||R 1,500,000||Taxable Income||R 500,000|
|Tax Payable (45%)||R 675,000||Tax Payable (45%)||R 225,000|
By investing R 1,000,000 into AltCap, an immediate tax saving of R 450,000 is provided (45%).
The above tax deduction will be granted to an investor within the the following tax year that the investment into the VCC was made. i.e. If a client invests on the 27th of February 2018, the deduction will be included in the investors 2019 income tax calculation.
If the investment in AltCap is not held for a minimum 5 years, the above-mentioned deduction becomes null and void and is added to the investors taxable income in the following year.
|Minimum Participation in the fund||R100 000|
|Maximum Participation||No Investor may make up more than 20% of the fund|
|Investors Holding Period||5 years|
|Annual Management Fee||2%|
|Performance Fee||‘A Shares’|
How ‘A shares’ work: AltCap, through the holding of the ‘A’ shares of the company, will receive 20% of all proceeds that exceed investors original investment. For everyone 4 shares an investor receives, one ‘A share’ is issued to the investment managers.
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