Page 4 - Test 1 Slides - 2. Donation Tax

DONATION TAX

Overview

• Donations tax, although levied in terms of PART V of the

Income Tax Act (sections 54 to 64), it is a separate tax from

income tax. It is payable on the transfer of assets from one

person (not necessarily a taxpayer) to another.

• Take note that donations tax could also affect the

calculation of capital gains tax, where an asset (as opposed

to cash) is donated. You therefore also have to refer to the

applicable paragraphs in the Eighth Schedule to the Income

Tax Act.

• Study in detail Donation Chapter 26 in Silk and be able to

attempt all additional practice questions.

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