We use the 12J Investment vehicle to deliver the highest possible returns to investors
SolarSwop offers investment in the renewable energy market through the Section 12J Investment Venture Capital Company – SS12J Capital. This is open to South African citizens only. Personal Investors receive from 28% – 45% of the Capital amount invested as a Tax Deduction from their Personal Tax, or 45 % tax deduction for a Trust. Corporates receive a 28% Deduction.
About Section 12J
Treasury is incentivising South African taxpayers to invest in the local economy, via a tax deduction on the investment amount provided the investment is made into an approved Section 12J Venture Capital Company, like SS12J Capital. The Investor benefits from both the return on investment on the full invested amount and the tax deduction.
The advantage of the 12J is the reduction in risk exposure allowing for higher yields. This means you get returns on 100% of the investment but with only risking 55% or 72% of your capital. Indicative returns of 6% per annum over 5 years projected in table. The Tax deduction is subject to 5 year lock in clause for the full investment otherwise SARS will recoup the deduction. The tax deduction can be carried over where the investor is a company. For individuals or Trusts is limited to the tax year of investment.
Fund Structure
Esoko Capital and SolarSwop are offering two Investment Fund Structure Options.
Option 1: – Traditional Solar Fund.
Option 2: – Digital Fund tied to the Esoko Exchange Token Sale offer.
Traditional Solar Fund
SS12J Energy Fund which will invest in Solar End-user Finance funds provided by SolarSwop. This is a Closed End Fund with a 12 Year Term. Paying a annual escalating combined distribution of interest and principal. The projected annual after tax return average is 12% with a 12 year IRR of 17.71% plus after taxes and fees.
Benefits:
- Reduced Risk
- Higher returns
Projected Investor Fund Returns on Traditional Solar Fund
Digital Fund
Invest in Esoko Digital Capital (EDC). EDC is a special purpose fund that has purchased tokens from the Esoko / SolarSwop Tokens Sale and will manage the tokens on the exchange on behalf of the 12J investors.
Benefits
Claim your tax deduction and reduce your cash exposure further through Token Sale Early Bird Discount of 30%. EDC has reserved tokens at a 30% discount for 12J Fund.