• The Kaplan Team

THOUGHT OF THE WEEK Taxed when making donations?

Updated: Apr 7, 2020

In South Africa we are subject to donations tax, so simply giving away or selling your assets for less than their actual market value, with no obligation to receive payment in return, may create a tax liability.


Donations tax is payable at a rate of 20% on the value of a property and must be paid by the person making the donation to the South African Revenue Services within three months of the date of the donation.


But note:

Some donations are free from donations tax. See the list provided in the Income Tax Act. These include donations between spouses and donations to approved public benefit organisations.


Natural persons receive an annual donations tax exemption of R100,000 while all other donors pay donations tax on any donation exceeding R10,000 during any year of assessment.

Contact our offices if you have further questions in this regard.


3 views0 comments

Recent Posts

See All

DISCLAIMER:

This article is not intended to constitute legal advice and is produced for information purposes only and to provide a general understanding of the legal position relating to the topic. It is recommended that advice relating to the specific circumstances of your situation be sought from our attorneys before acting upon the content of this article. This article was written at a particular point in time and accordingly may not always reflect the most recent legal developments, if any, applicable to the relevant topic. Kaplan Blumberg and its partners and/or employees, are not responsible for any consequences which may follow upon any decision taken to act upon the information provided in this article.