FAQ: Are there any additional requirements to be met by an approved Venture Capital Company?
Yes. The company must satisfy the following additional requirements after the expiry of 48 months commencing on the first date of the issue of venture capital share: A minimum of 80% of the expenditure incurred by the Venture Capital Company to acquire assets must be for qualifying shares, and each qualifying company (i.e. investee) must, immediately after […]
FAQ: What are the preliminary requirements to be met to become an approved Venture Capital Company?
A company must meet all the following preliminary requirements to qualify for an approved venture capital company status for each year of assessment: The company must be a resident; The sole object of the company must be the management of investments in qualifying companies (i.e. investees); The company’s tax affairs must be in order; The […]
FAQ: What happens after the VCC application form has been submitted?
SARS will assess the application form to determine if the company meets the requirements. If the application is successful, a venture capital company reference number will be allocated and an approval letter will be issued to the applicant. If the application is not successful, a rejection letter will be issued to the applicant stating the […]
FAQ: How is interest paid to a non-resident from a South African source taxed?
As from 1 March 2015 interest from a South African source paid to a non-resident will be taxed at a final withholding tax rate of 15%. See more information on Withholding Tax on Interest (WTI).
FAQ: When will a non-resident be required to submit a tax return?
Non-residents are taxed on income received or accrued from a South African source (such as annuities which accrue to a person as a result of services rendered in SA, rental income from property in SA or interest income from a local bank, etc.). If a non-resident receives income from a South African source, he or […]
FAQ: Am I required to submit an income tax return if I am a South African resident but I work overseas and I do not earn other income from a South African (SA) source except for exempt interest income from a South African source?
If you are a tax resident of South Africa, you are subject to tax on worldwide income, irrespective of where the income is earned. You may, however, qualify for certain tax exemptions (such as an exemption against interest received, or an exemption against foreign employment income). Should you be subject to tax in more than […]
FAQ: What qualifies an individual as a non-resident?
An individual is regarded as a tax resident of SA if he or she is ordinarily resident in South Africa or meets the requirements of the physical presence test. If neither of these apply, the individual will be regarded as a non-resident. For more information on these two tests, please refer to the Guide on the […]
FAQ: How and where must the VCC application form be submitted to?
The signed application form and relevant material can be submitted via the following methods: Email to [email protected] Post to SARS Large Business Centre Venture Capital Companies Private Bag X170 Rivonia 2128
FAQ: How can a company apply for a Venture Capital Company status?
An application (VCC001) form is available on the SARS website. The form must be completed and submitted to the SARS Large Business Centre together with the required relevant material.
FAQ: What is a Venture Capital Company?
It is a company that has satisfied the requirements stipulated in section 12J(5) of the Income Tax Act, No. 58 of 1962 and has been approved by SARS.
