It can also pay dividends out of capital, which gives fund managers flexibility to meet dividend payment obligations. A VCC has a variable capital structure that provides flexibility in the issuance and redemption of its shares.The anti-money laundering and countering the financing of terrorism obligations of VCCs will come under the purview of the Monetary Authority of Singapore (MAS). All VCCs must be managed by a Permissible Fund Manager 1. The VCC Act and subsidiary legislation is administered by ACRA. The VCC will complement the existing suite of investment fund structures available in Singapore. The Variable Capital Company (VCC) is a new corporate structure for investment funds constituted under the Variable Capital Companies Act which took effect on. Online Variable Capital Company (VCC) Registration and Filing Portal.If the approval of a VCC status is withdrawn, an amount equal to 125% of the aggregate amount contributed by the investor(s) in exchange for VCC shares must be included in that VCC’s income in the year of assessment in which such approval has been withdrawn. the commencement of that year of assessment where the VCC does not meet the additional requirements after the expiry of 36 months from the date of first issue of VCC shares.In the case of a holding of more than 20% of a class of VCC shares, the withdrawal of the VCC will be from the commencement of that year of assessment during which the 20% holding is exceeded or the date of approval of the VCC status, if the approved VCC does not take the acceptable corrective steps to rectify the connected person requirement within the period specified in the written notice from SARS.the commencement of that year of assessment if the VCC does not meet the preliminary approval requirements or.If the approved VCC does not take the acceptable corrective steps within the period specified in the written notice, the approved VCC status will be withdrawn from – SARS will issue a written notification to the VCC stating the requirements that have not been met and provide a grace period for the VCC to meet the requirements. The expenditure incurred by the VCC to acquire qualifying shares in any one qualifying company must not exceed 20% of any amounts received by the VCC in respect of the issue of VCC shares.R50 million in any other qualifying company. R500 million in any junior mining company or.A minimum of 80% of the expenditure incurred by the VCC to acquire assets must be for qualifying shares, and each investee company must, immediately after the issuing of the qualifying shares, hold assets with a book value not exceeding:.The company must satisfy the following additional requirements at the end of each year after the expiry of 48 months from the first date of the issue of VCC shares by the VCC.If, during any year of assessment, after the approval of the Venture Capital Company status, the company fails to comply with the preliminary requirements as listed above.SARS can withdraw the approved VCC status for non-compliance with the following: How do I apply?įor a list of the approved VCC’s with contact details, click here. The VCC regime is subject to a 12 year sunset clause that ends on 30 June 2021. Please note: Persons who intend to or do make investments into a SARS approved VCC in terms of section 12J of the Income Tax, may under no circumstances request a tax directive under paragraph 11 of the Fourth Schedule to the Income Tax Act, in order to reduce his or her tax liability. The company must be licensed in terms of section 8(5) of the Financial Advisory and Intermediary Services Act, 2002.The company’s tax affairs must be in order and.The sole object of the company must be the management of investments in qualifying companies (i.e.This deduction will not be subject to recoupment if the VCC shares are held for longer than five years.Ī company must meet all of the following preliminary requirements to be able to get a SARS approved VCC status: From 1 January 2009, investors can claim amounts incurred on acquiring VCC shares as a deduction from income. However, from 21 July 2019, investments made by a natural person and trusts will be capped at R2.5 million and for companies, investments will be capped at R5 million.
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