One of the many benefits that PATC offer taxpayers is assistance with donations tax. Donations tax is payable at a rate of 20% on the value of any property disposed of by a South African resident (natural person, corporate entity or trust), according to the following terms:
- Excluding donations exempt from the tax (see exclusions below)
- Provided that the tax is paid within three months of the donation taking effect.
What do Exempt Donations Include?
PATC will be able to assist taxpayers in determining whether their donation is except from tax or not. The following should be considered in regards to exemptions:
- Donations by natural persons up to R100, 000 per year.
- Donations by corporate entities not considered to be public companies up to R10 000 per year
- Donations between spouses not separated
- Bona fide maintenance payments
- Donations to Public Benefit Organisations and qualifying traditional councils and communities
- Donations where the donee will not benefit until the death of the donor
- Donations made by companies which are recognised as public companies for tax purposes
- Donations cancelled within six months of the effective date
- Property disposed of under and in pursuance of any trust
- Donation of property or a right in property situated outside South Africa if acquired by the donor:
- Before becoming resident in South Africa for the first time, or
- By inheritance or donation from a non-resident
- Donations between companies forming part of the same group of companies.
For further assistance on including donations in tax returns, contact us today