With the implementation of a second tier in the payment of estate duty, it naturally follows that donations tax would also be amended to follow suit.

A natural person may only donate/ give away R100 000-00 (in cash or assets or a combination of both ) per financial year before donations tax applies. This obviously excludes any amounts which are allowable as deductions for Income Tax purposes such as donations to Public Benefit Organisations as mentioned in last month’s Sentinel Watch.

The tax is payable by the donor to SARS.

In terms of the last budget speech, any donations below R30 Million is subject to donations tax of 20% and any amounts donated above R30 Million is taxed at 25%

Should you have any queries, please do not hesitate to contact us.

Tel: 021 674 0390 / 011 656 2722