1. no transfer duty
Furnish your apartment with savings
Transfer Duty is a tax levied by SARS (South African Revenue Service) on the value of any property acquired by an person. When buying into The Pinnacle, you avoid paying this cost, as you will be buying off-plan from the developer. The purchase price you pay includes VAT (Value Added Tax). If you bought an apartment for R1 500 000, you would save over R25 000, this could furnish your apartment.
2. Urban Development Zone
Reduce taxable income owed to sars
UDZ (Urban Development Zone) allows the purchaser, as a registered taxpayer, the opportunity to reduce their taxable income that is owed to SARS. This benefit is utilized as a depreciable allowance over an 11-year period. For The Pinnacle Development this cash flow instrument is calculated on a rebate of 30% of the purchase price, 20% of this rebate can be claimed in year one and the balance over the next ten years.
3. SECTION 12J (VCC)
Rebate on investment
Section 12J is not a new comer to the property investment space; this tax relief has been around since 2009. The Pinnacle development will provide investors who are in the top tax bracket an opportunity for SARS to rebate 41% of their investment. We will be teaming up with an approved S12J fund in order to facilitate this process for you.
4. SECTION 13SEX
allowance from new residential acquisitions
Investing savvy includes taking advantage of tax incentives that SARS has to offer. Making a decision to invest in a property should not stop at the tax breaks that may be offered to you, the investment needs to make financial sense. This tax incentive offers a 5% allowance per annum over a 20-year period of any new acquisition of a residential unit that is owned by the taxpayer.
Responsible investment decision making
The following material was provided as a very basic guide to familiarizing a buyer with the tax incentives and is for information purposes only . There are a number of requirements that need to be met in order to benefit from the aforementioned tax breaks and allowances.
The tax incentives provided are generic and may not apply to your circumstance. The development company nor its representatives or affiliates will be held accountable for decisions concluded through the information provided.
Please consult with the various SARS Tax Guides and your tax advisor for more information and advice prior to concluding a transaction.