The venture capital company tax regime was introduced in 2008 to incentivise equity investments in small and upcoming businesses. A number of amendments, coming into effect between 24 October 2018 and 1 January 2019, have recently been made to this regime as part of the 2018 legislative cycle. The majority of the amendments are aimed at curbing practices that were considered by the National Treasury to be abusive. There are however some amendments that provide venture capital companies some leeway around complying with the prescribed rules.
Full article on: Changes to venture capital company tax regime