Can I borrow money from my Company (Pty Ltd) to purchase shares in it?

11 November 2013

Admin User

Yes it is possible to borrow money from your company (pty ltd) to purchase shares with in your company, i.e., enter into Employee Share Scheme. 

Please refer to Section 109NB of Income Tax Assessment Act 1936 (ITAA 1936).

Please note that other conditions must be satisfied in particular Section 83 A - B and A - C of Income Tax Assessment Act 1997 (ITAA 1997).

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