Page 61 - Taxation Test 4 Slides - Individuals

INDIVIDUALS & RING FENCING

Donations deduction (s 18A)

• Qualifying donations are calculated with reference to

taxable income, but in terms of section 18A(1), the

deduction in respect of qualifying donations must be

calculated on taxable income (excluding any retirement

fund lump-sum benefit, retirement fund lump sum

withdrawal benefit and severance benefit).

• The deduction for qualifying donations is the last

deduction in the calculation of taxable income.

• The “taxable income” for purposes of section 18A

(donations) deduction will therefore include a taxable

capital gain.

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