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Donation. Is it taxable by the receiver?

Posted 6 August 2015 under Tax Q&A


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John says:
6 August 2015 at 7:10

My Father who is a non-tax resident of South Africa would like to assist my wife and I with a donation of R500 000 to help us to buy a house. Please advise if I receive this donation if it is required that I declare it it on my tax return and if it is subject to any tax?

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TaxTim TaxTim says:
6 August 2015 at 15:26

Since your father is a non-tax resident, there won't be any tax payable in South Africa on the donation made to you.

If he was a South African tax resident, he could donate tax-free up to R100,000 only, and anything above this amount would be taxed at 20%. (i.e donations tax is payable by the donor)

In the opening questions of your tax return, you should answer the question below as "yes":

"Did you receive any income considered as non-taxable?"

And then scroll down and include this in your tax return as a "donation".


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