TAXED WHEN MAKING DONATIONS?
Category General News
TAXED WHEN MAKING DONATIONS?
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:
1. Some donations are free from donations tax. See the list provided in the Income Tax Act here. These include donations between spouses and donations to approved public benefit organisations.
2. 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.
Author: STBB
