What is a donation in South Africa?
The following is a definition of a donation in South Africa. A donor can be an individual or an organization, and a donation is anything given with no expectation of something in return.
What is the donation tax rate in South Africa?
South Africa has a 20% tax rate on the aggregated value of property donated not exceeding R30 million, and a 25% rate on the value exceeding this amount.
What are the categories of donations tax exemptions in South Africa?
A donation made to a spouse; an approved public benefit organisation
South Africa’s tax code allows for different donations to be tax-exempt. To illustrate, a donation made to a spouse is exempt from tax. There are also certain public benefits organisations that are deemed approved and so can receive tax-exempt donations.
With a donor who is not a natural person (for example, companies and trusts)
Governments and law enforcement around the world have to apply for a warrant to obtain information about the identities of these individuals. In the USA, an individual may be obligated to provide their name and address if they are suspected of tax evasion.
The first R100 000 of property donated in each year of assessment by a natural person is exempt
So much of any bona fide contribution made by the donor towards the maintenance of any person.
The term “donor” typically refers to someone who provides money as a gift or contribution for a cause or program. Sometimes, a donor may also provide their time, skills and effort towards the program. The word “bona fide” means that it is real and that there are no ulterior motives from the donor. The word “contribution” is something that the person makes to help.
