Donations Posts in Tax Q&A

Tax on Loans



If my brother gave me an interest free open-ended loan - what would the tax implications be?

Tax on retirement gift from a Church to a Pastor



Our church wants to donate a parting gift to a retiring Pastor of between 500000 and 750000. Will the church have to pay donations tax or will the retiring Pastor have to pay tax on this amount?

Non-resident donor tax



If my brother is a non-resident (USA citizen) and he donates money to me as a South African citizen is there donations tax and if not - do I still need to notify SARS of having received the donation?

How are personal assets to be valued? Personal assets given or donated to you?



Am I correct in understanding that the valuation of personal assets is at cost price? What about personal assets that you have received as personal gifts/donations over say 10 yrs which in each year was under the annual exclusion rate. These assets have value yet cost is zero as they were given freely & gratis. How will/would SARs see this in an event of an Audit and a Home inspection?

Tax on Receiving Foreign Funds over R100 000



My mother is moving to RSA and wants to transfer an amount of R250 000 into my account to 'hold' for her until she sets up her RSA bank account. The amount is in EUR. I spoke to SARS who claim that I can declare it as 'non-taxable income/gift' in my tax returns. I asked them to clarify donations tax but they insist, it will not be counted as a donation unless I file an IT144?

a) is this true; every person and website I have checked with refer to donations tax @ 20% (on amounts > R100 000) ...

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Tax benefit for working in a non-profit organisation



I work for a global non-profit organisation. I am based in South Africa and my letter of employment is aligned with SA employment regulations and taxes. Are there any tax benefits that apply in this case?

Interest on family loans



If I loan my child R150 000 and charge her 7,5% interest, would that be considered fair interest by SARS ( I will also donate R 100 000 to her in that same tax year), and the interest I earn (from the loan) would that fall into the R 23 800 interest exemption, and not actually be taxable?

Cash donation received from Mom R96,000 to pay monthly debit orders



I studied full time in 2014 and my Mom deposited R8,000 monthly into my bank account so that I could pay my debit orders. The total amount received from her was R96,000. I am now completing my tax return for tax year ending Feb 2015.

How do I disclose this cash donation? I do not have to pay her back so it is not a loan.

Tax and handling donation from non SA resident



Dear Tim,
Are there any taxes due in South Africa, if my daughter (non SA resident, living in Australia and having Australian passport) donates money (more than ZAR100K) to her parents, and we do not transfer the money to SA and keep them within a bank outside SA (UK or other place) and in different currency?
1. Do we have to declare such a donation on our tax returns and what are the tax complications here?
2. Do we have to declare this account/amount every year in our tax returns and pay some taxes like capital gain tax as a result of Rand depreciation?...

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Are anointed church materials sold in church subject to tax exemption



Are anointed church materials (e. G anointed oil, wrist bands, t-shirts) sold in church premises subject to tax exemption under SARS Act. If so, what is the relevant law governing such exemption and procedure of securing such exemption

Must I submit returns for previous years when I earned very little? (single income, no claims)



After phoning SARS about an eFiling problem (presently 2015), I was told by the consultant that my tax return for 2013 was overdue. I responded that I hadn't been making anywhere near the tax threshold that year, and that various SARS website material, tax-consultants & SARS consultants over the years had confirmed as much (single source income, no med-aid, no R/A, no travel, no NPO-PBO donations, etc). He responded that everyone had to submit a tax return every year, regardless of how much they...

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Can use of vehicle be classified as fringe benefit



Directors purchase 2 luxury motor vehicles on company name. But the installments are being paid off the directors loan account. SARS raises an assessment on the directors personal capacity stating understated PAYE. Can SARS do this? Can an objection be raised?

Donations and Tax



I would like to understand how donations / gifts work. I have read a few things but want to make sure I have it right. Lets say a friend of mine is in need and I donate / gift her R120k in a year. Do I pay tax on that? Does she? Does it form part of taxable income etc?

If one is not employed but gets donations for their upkeep, are they liable for tax?



If one is not employed but gets donations for their upkeep, are they liable for tax?

Gift from someone in the UK, do I declare?



If I receive one hundred and twenty thousand as a gift from someone in the UK split up during the year do I need to declare this to SARS? I was only employed for two months during the financial year so would not have to submit a tax return?

Receiving money for my father



My dad (not South African, and resident in Zimbabwe) receives a modest retainer from a South African company that he sells product for in Zimbabwe. He decided that he wanted the retainer to be sent to me, so it goes into my bank account monthly. (Please note, I'm not an employee of that company). How does that work for my personal tax? Do I declare it, and if so, what as?

Clarification of record of donation



Does the R100 000 free donation between spouses have to be an actual transfer of funds or is it purely a paper transaction and or are there any SARS forms to be completed.

CAPITAL GAIN TAX ON A HOUSE



As a private taxpayer, you letting out a house of yours for 7 years. Then you decide to live in the house yourself ( I believe the house then becomes you primary residence. ). For example, after 2,3 or even 7 years,you decide to sell the residence. With Capital gain tax in mind,do SARS handle it as normal CGT on a primary residence or because that you have letting it out, is there a special formula when culculate your liability for CGT on the house. I own more tha n one house..

Foreign gift in the form of donations?



How much can I receive as a SA taxpayer receiving a gift from an overseas Foundation?

Amount is $100,000.

How do I apportion the depreciation?



Good day. I have a cell phone worth 5400. I use it 80% for business and 20% personal use. Will my deduction be the full 5400 because its under 7000 or 5400*80%?

thank you in advance

Are overseas gifts from children classified as an income?



One of our children, who is working overseas, has recently being sending my wife and I (we are 63 years old) money each month to help with our expenses. Once this overseas money clears the Bank, this financial assistance works out approx. To R25,000 to R40,000 per month (in one instance, an amount was ALSO included for our grandson's annual school fee: R64,000 ) and this works out to approx. R364,000 per annum). We have indicated to the Bank that each of these amounts is being received as a gift...

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Gift of GBP



Please would you let me know what the tax implications are for receiving a gift of GBP4000 into my RSA bank account. Thanks very much.

How much tax is required if you earn R17500 per month



What is tax figure if you earn R17500 monthly and you contributing R810 provident fund

Micro Business



The First R200 000 dividends paid during the year of assessment by the micro business is exempt from dividends tax. The Micro Business cannot deduct any business expenditure. What does this mean, can I then not deduct vehicle expenses, donations, etc..

Deduct home office expenses with split income streams and no IRP5



I work from home - part time as a contractor for a US-based company, and part time for a South African private company of which I'm one of the shareholders / directors. I earn a regular monthly salary from the foreign corporation, but they don't issue an IRP5. I also bill my local company for my time, but irregularly, and often this income is put into a director's loan account rather than paid out in cash. The local company did not issue me an IRP5 for 2014. How do I declare my income in such a ...

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