A tax framework for crowdfunding in South Africa

Abstract

Crowdfunding is an innovative tool used by entrepreneurs and small businesses to access capital from sources other than the financial services and the banking industry. It is one of the most promising tools to assist in enabling economic growth, job creation and innovation by supplying capital to entrepreneurs and small businesses. Crowdfunding refers to a method of raising funds by using social media and social networks. The main crowdfunding models identified (classified on the basis of the type of return received in exchange for the funds provided) are: the donation model, the rewards model, the debt model and the equity model. Since there are currently no specific tax legislation provisions in South Africa for crowdfunding transactions, the tax implications of crowdfunding transactions fall within the general tax principles of the Income Tax Act. The tax treatment of crowdfunding models is not always certain. The main purpose of this study is to determine whether specific legislation or amendments to existing provisions are required for crowdfunding transactions or whether the existing provisions are sufficient in South Africa. The main focus is from a tax perspective but other relevant existing legislative requirements such as the Companies Act that have an influence on tax legislation, have also been considered. An exploratory mixed method approach was followed by conducting a literature study, conducting interviews and also obtaining results from a survey instrument. This study aims to assist in developing and establishing a distinct framework for the South African crowdfunding industry. It is proposed that a single tax credit should be introduced for funders to accommodate crowdfunding performed in support of small businesses.

Skarefinansiering is ’n innoverende hulpmiddel wat deur entrepreneurs en klein ondernemings gebruik word om kapitaal van bronne anders as finansiële dienste en die bankbedryf te verkry. Dit is een van die belowendste hulpmiddels om ekonomiese groei, werkskepping en innovering moontlik te maak deur kapitaal aan entrepreneurs en klein ondernemings te voorsien. Skarefinansiering verwys na ‘n metode om fondse in te samel deur van sosiale media en sosiale netwerke gebruik te maak. Die hoofmodelle van skarefinansiering wat geïdentifiseer is (geklassifiseer op grond van die soort opbrengs wat ontvang word in ruil vir die fondse wat voorsien word) is die skenkingsmodel, die vergoedingsmodel, die skuldmodel en die ekwiteitsmodel. Aangesien daar in Suid-Afrika tans geen spesifieke voorsiening in belastingwetgewing vir skarefinansieringstransaksies gemaak word nie, sorteer die implikasies van skarefinansieringstransaksies binne die algemene belastingbeginsels van die Inkomstebelastingwet. Die hantering van belasting van skarefinansieringsmodelle is nie altyd seker nie. Die hoefdoel van hierdie studie was om te bepaal of spesifieke wetgewing of wysigings aan bestaande bepalings vir skarefinansieringstransaksies vereis word en of die bestaande bepalings in Suid-Afrika voldoende is. Die hooffokus is vanuit ’n belastingperspektief, maar ander toepaslike bestaande wetlike vereistes, soos die Maatskappywet wat ’n invloed op belastingwetgewing het, is ook in ag geneem. ’n Ondersoekende gemengde metode benadering is gevolg deur ’n literatuurstudie en onderhoude te onderneem, asook deur resultate vanaf ’n opname-instrument te verkry. Die mikpunt van die studie was om ondersteuning te verleen aan die ontwikkeling en vestiging van ’n duidelike raamwerk vir die Suid-Afrikaanse skarefinansieringsbedryf. Daar word voorgestel dat ’n enkele belastingkrediet vir befondsers ingestel word om skarefinansiering te akkommodeer wat onderneem word om klein ondernemings te ondersteun.

Ukuqongelela imali enanini elikhulu labantu lapho emunye enikela ngemali encane, ngokwejwayelekile nge-inthanethi yithuluzi elisha elisetshenziswa ngabantu abasungula amabhizinisi, bethatha ubungozi bezezimali ngethemba lenzuzo kanye namabhizinisi amancane ukuthola imali evela kweminye imithombo ngaphandle kwezinsizakalo zezezimali kanye nemboni yasebhange. Kungelinye lamathuluzi athembisa kakhulu ukunika amandla ekukhuliseni komnotho, ukuvulwa kwamathuba emisebenzi kanye nokusungula izinto ezintsha ngokunikezela ngemali ebantwini abasungula amabhizinisi, bethatha ubungozi bezezimali ngethemba lenzuzo kanye namabhizinisi amancane. Ukuqongelela imali enanini elikhulu labantu lapho emunye enikela ngemali encane, ngokwejwayelekile nge-inthanethi kubhekisa endleleni yokuqongelela imali ngokusebenzisa imithombo yezokuxhumana kanye nokusetshenziswa kwezingosi zokuxhumana ezisuselwa ku-inthanethi ukuze uhlale uxhumekile nabantu. Izifanekiso eziyinhloko zokuqongelela imali enanini elikhulu labantu lapho emunye enikela ngemali encane, ngokwejwayelekile nge-inthanethi ezihlonziwe (ezihlukaniswe ngesisekelo sohlobo lwenzuzo etholakele kushintshaniswa nezimali ezinikeziwe) yizifanekiso zomnikelo, isifanekiso semiklomelo, isifanekiso sesikweletu kanye nesifanekiso sokulingana. Njengoba njengamanje kungekho zinhlinzeko ezithile zomthetho wentela eNingizimu Afrika zokuthengiselana kwemali eqongelelwe enanini elikhulu labantu lapho emunye enikela ngemali encane, ngokwejwayelekile nge-inthanethi, imiphumela yentela yokuthengiselana kwemali eqongelelwe enanini elikhulu labantu lapho emunye enikela ngemali encane, ngokwejwayelekile nge-inthanethi, iwela ngaphansi kwemigomo yentela jikelele Yomthetho Wentela Yemali Engenayo. Ukuphathwa kwentela yezifanekiso zokuqongelela imali enanini elikhulu labantu lapho emunye enikela ngemali encane, ngokwejwayelekile nge-inthanethi akuhlali kuqinisekile ngaso sonke isikhathi. Inhloso enkulu yalolu cwaningo bekungukuthola ukuthi ngabe umthetho othile noma izichibiyelo ezihlinzekiwe ezikhona ziyadingeka yini ekuqongeleleni imali enanini elikhulu labantu lapho emunye enikela ngemali encane, ngokwejwayelekile nge-inthanethi noma ngabe amalungiselelo akhona anele yini eNingizimu Afrika. Ukugxila okuyinhloko kususelwa embonweni wentela kodwa ezinye izidingo ezifanele zomthetho ezifana noMthetho Wezinkampani onomthelela emithethweni yentela nazo zibhekiwe. Indlela ehlangene yokuhlola ilandelwe ngokwenza ucwaningo lwezincwadi kanye nezingxoxo kanye nokuthola imiphumela ethuluzini lokuhlola. Lolu cwaningo luhlose ukusiza ekwakheni nasekusunguleni uhlaka olwehlukile lomkhakha wezimboni zaseNingizimu Afrika zokuqongelela imali enanini elikhulu labantu lapho emunye enikela ngemali encane, ngokwejwayelekile nge-inthanethi. Kuphakanyiswa ukuthi kwethulwe isikweletu esisodwa sentela kubaxhasi bezimali ukubhekela ukuqongelela imali enanini elikhulu labantu lapho emunye enikela ngemali encane, ngokwejwayelekile nge-inthanethi kwenziwe ukuxhasa osomabhizinisi abancane.