Page 188 - ADVANCED TAXATION - Day 1 Slides

DONATIONS TAXONATIONS TAX
D

Donation tax

• Tax purposes, donations and gifts are treated

differently to inheritances. For resident individuals,

donations are subject to a Donations Tax of 20%,

with an annual exemption of up to R100,000 of the

value of all donations made during the tax year. For

example, if a once-off donation of R80,000 is made

by an individual, no tax is payable, but if a donation

of R140,000 is made, then Donations Tax of R8,000

is payable (20% of the amount exceeding R100,000,

which is R40,000). For companies or trusts, the

exemption for casual gifts is up to R10,000 per tax

year.

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