According to SARS, "Deductions in respect of donations to certain public benefit organisations are limited to 10% of taxable income (excluding retirement fund lump sums and severance benefits)". Assuming that my taxable income is R100,000, I can donate a maximum of R10,000 to a qualifying 'public benefit organisation'. In my tax calculation, should I deduct that R10,000 from my taxable income, or from the amount of tax that I owe? If I can deduct it from the amount of tax due to SARS, the latter options seems too good to be true.
In your tax return, you would tick yes to the question which asks if you donated to a Public Benefit Organisation (PBO). You would then fill in the amount and give details of the PBO in the relevant section of the tax return.
In your calculation you would deduct R10,000 from your taxable income (and not unfortunately from your tax due).
Please Register for TaxTim and let us assist you to complete and submit your tax return and provisional tax returns to SARS.
Nick51says: 26 January 2016 at 11:53
Thanks again :)
TaxTimsays: 26 January 2016 at 11:57
Only a pleasure!
Get SARS Tax Dates and Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.