Maximum Limitation on Receiving a Gift before Liable for Tax?

Hello Tim,What is the maximum amount of money that I can receive as a gift from somebody before I become liable to pay tax on the gift? To be exempt from paying tax on a gift, am I limited to whom I may receive a gift from (for example: a relative/friend/stranger/business)?Nice website, by the way.

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TaxTim TaxTim says:
16 January 2013 at 11:27

Thanks for the kind words!

Unless you receive a on-going "gift" from someone who is connected to you, so a business partner, family member etc then a once of gift would not be taxable in your hands regardless of the amount. However for the person giving you the money, they would need to pay tax on this amount at 20% of the total over R100 000. If they do not pay the tax on this only then would you be liable to pay donations tax.

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