• See the Frequently Asked Questions below, or set-up a meeting to discuss any questions you may have

    You can also download our Fund Fact Sheet here.

  • Is the investment 100% Shariah Compliant?

    Invest Shariah 12J Fund (Pty) Ltd has been issued a certificate from the Shariah Supervisory Board (SSB). The SSB made its official pronouncement after reviewing all of our contracts, literature and associated processes.

     

    Sharia Compliance Board: Global Islamic Financial Services Firm propriety limited (GIFS) is a South Africa based company specialised in providing Sharia Advisory services, supervision, Sharia auditing and human capital development.

    Who can take advantage of the Prudential Shariah 12J Investment Fund?

    Investment is by invitation only to qualifying investors. The section 12J investment structure means that any South African taxpayer can take advantage of the Invest Shariah 12J Fund tax deduction. In other words, foreign or local companies or individuals and trusts who pay tax in South Africa, can invest in the Invest Shariah 12J Fund and claim the tax deduction. Click here to book an appointment to discuss with one of our registered representatives.

    When can the Section 12J Tax deduction be claimed?

    As soon as the Fund issues the investor with a section 12J Tax certificate, the deduction can be claimed directly by the Investor when completing his/her/its tax return or calculating the next provisional tax payment due. In other words, 100% of the Section 12J tax deduction is claimed in the same year that the investment is made.

    How does the tax incentive work and how is the deduction calculated?

    The tax incentive is for South African taxpayers investing into a local Section 12J VCC and is in the form of a reduction in the taxpayer’s taxable income, by the full amount invested. This is claimed by the South African taxpayer in the year the investment into the Section 12J VCC is made. Therefore, a South African taxpayer effectively receives up to 28% as a corporate and up to 45% as an individual or trust on the full investment value into a Section 12J VCC. By way of illustration, for an individual for every R1 million invested, he/she will receive up to R450,000 back as an immediate return in the form of a reduced tax bill. This means the individual investor receives the full R1 million investment exposure (future growth on the R1 million) for just R550,000 net investment (reduced risk exposure). In the case of a Company or Corporate, for every R1 million invested, it will receive R280,000 in the form of a reduced tax bill, meaning the company receives the full R1 million investment exposure for just R720,000 net investment.

     

    Illustration - Individuals and Trusts

    Initial Investment: R1,000,000

    Tax relief (in the year of the investment): -R450,000

    Net Investment (Riks Capital): R550,000

    Effective Tax Relief: 45%*

     

    Illustration - Corporates

    Initial Investment: R1,000,000

    Tax relief (in the year of the investment): -R280,000

    Net Investment (Riks Capital): R720,000

    Effective Tax Relief: 28*

     

    *Dependent on the investor marginal tax rate in the year of assessment

    Can I invest more than my taxable income?

    Yes, however, legislation is unclear as to whether an individual can carry the tax credit over to the following tax year. In the case of a company, the company may carry the tax credit over to the following tax year. We recommend that individuals only invest up to their taxable income in the current year.

    What is the downside of investing via Section 12J?

    The only real downside for an investor is that the capital investment in a Section 12J VCC is required to be held for a minimum of 5 years, otherwise the tax deduction claimed will have to be recouped. In other words, if you sell your shares within 5 years, the tax break received in year 1 will have to be added back in the year you sold your shares. Dividends can be paid to an investor during or after the 5 year period. We recommend to only invest in our fund should your capital return investment horizon exceed 5 years.

    What sectors can S12J VCC's invest in?

    The legislation only limits the sectors into which a Section 12J VCC cannot invest. In other words, a Section 12J VCC can invest in any sector except:

    • immoveable property, unless in the hospitality sector (an investor can, therefore, in certain circumstances invest in hotels, serviced apartments and student residences);
    • any trade carried on in the financial services sector (i.e. banking, insurance etc.);
    • any trade carried on in respect of financial or advisory services; and
    • gambling, liquor, tobacco, arms and ammunition;

    Are you FSCA and SARS registered?

    The Invest Shariah 12J Fund (Pty) Ltd (Registration number 2016/458652/07) is a registered section 12J Venture Capital Company (registration number VCC-0054) with SARS and registered Category 1 Financial Services Provider in terms of the FAIS Act (registration number: FSP-47715) - registered with FSCA (previous the "FSB").

    What is the minimum investment amount required?

    Minimum lump sum per investor is R1,000,000 by invitation only (not an offer to the general public to subscribe for shares).

    What are the Benefits to the Investor?

    Investors would benefit from investing in Invest Shariah 12J Fund as follows:

    • Shariah compliant and verified.
    • Income Tax Benefit of up to 45%.
    • Blend of high capital growth and yield generating assets.
    • Annual targeted dividends.
    • Investing alongside other investors sharing investment risk.
    • A transparent property investment fund with all-inclusive fees - no hidden costs.
    • Access to top investment opportunities, pre-screened and vetted by the management company.
    • All investment opportunities and assets screened by Shariah Supervisory Board adhering to strict Shariah practices.
    • Investments overseen and supported post-investment by an experienced property management team, business partners, service providers and advisory team.
    • Diversification into an alternative asset class.
    • Investment exposure in the R6bn asset rental market in SA.
    • Above market income and capital returns.

    How do I take advantage of Section 12J?

    Simply invest in the Invest Shariah 12J Fund. Click here to book an appointment to discuss the opportunity with one of our representatives.

    How do I take advantage of Section 12J?

    This document does not contain all of the information necessary to fully evaluate any transaction and, as such, should not be solely relied upon. Any investment decision should thus be made after appropriate due diligence. In this respect, Investors should not view this document as comprehensive advice in terms of the Financial Advisory and Intermediaries Act (FAIS) of 2002.

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TERMS AND CONDITIONS

(1) Invest Shariah 12J Fund (Pty) Ltd (in the process of being renamed from Prudential Shariah S12J Investment Fund) (company registration number: 2016/458652/07) is:
(a) A Shariah Compliant investment product; and
(b) A registered and authorised financial service provider (FSP registration number 47715); and
(c) A registered Section 12J Venture Capital Company (SARS registration number VCC-0054).

(2) DISCLAIMER: The content provided on this website does not constitute as solicitation, guidance, proposal, invitation or investment recommendation or advice, and prior to considering such an investment, we recommend prospective investors seek specialised financial, legal and tax advice.
(3) Please further note that an investment in the Invest Shariah 12J Fund is by invitation only and not available as an offer to the public, with a minimum investment requirement of R1 million per investor. To enquire about investments, and see if you qualify, please complete the contact us form on our website and we will put you in touch with one of our senior executive and FCSA registered representatives.
(4) All potential benefits and savings referred to on this website relate to a potential income tax saving should the investors deduct their full investments for income tax purposes in accordance with section 12J of the Income Tax act, assuming the client is in the highest tax bracket of 45% for individuals and trusts and 28% for companies (being their assumed effective tax rate saving), and assuming the investment is made in qualifying entities and the Investor qualifies for the tax benefit.