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Nas says: 5 November 2015 at 17:57 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? |
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TaxTim says: 5 November 2015 at 20:31 Donations between SA residents are tax exempt up to R100,000 per annum. Any amounts over R100,000 are taxed at 20% in the hands of the donor. The recipient needs to declare it in their tax return as "amounts not considered taxable" and it will not attract tax. Donations between spouses are not taxable. Donations from an offshore donor to a SA resident do not attract tax either. |
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