Hide
Earn under R350,000? Click here to see why you still need to file to get your Tax Refund.
CLOSE
Get Tax Deadline Reminders, News and Tips
 

We'll tell you when you need to file, along with tax tips and updates.
Try Tim Now

is a marriage by muslim rites included in the definition of a spouse regarding donations tax?

Posted 23 February 2016 under Tax Questions



Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →
Ohsoworried says:
23 February 2016 at 12:49

What should I select for marital status when filing tax return, religious marriage (married by muslim rites) usually muslim marriages are ANC however we have not yet registered our marriage?
Will my husband be expected to pay donations tax on cash he transferred to me for safe keeping? For tax purposes are we considered to fall within the definition of spouse and as such not be liable for donations tax?

Example: Husband transfer R500 000. 00 of his savings to wife married in accordance with muslim rites, wife invests the money with a Bank and earns interest on it. Wife will declare the interest on investment on her tax return. Is the husband liable for donations tax? The savings he donated was from bonus's he received over the years (already taxed) which he parked off in his access bond account. We met with an attorney to draw up an ANC contract -finalised and signed a few weeks ago. We intend to have our marriage registered soon. Does this affect the donation in any way considering that the donation was made before the ANC contract was signed?

Do we have to submit any documents to SARS for this?
Also husband transfers money from his after tax salary to wife monthly -wife invests this in a call account saves towards holidays and to fund unexpected expenses for the children, does this need to reflect on a tax return as well? Wife does declare the interest earned on her tax return. Is there a donation tax payable on these monthly transfers?

This entry was posted in Tax Questions and tagged , , , , , , . Bookmark the permalink.

TaxTimTaxTim says:
23 February 2016 at 12:57

SARS will accept your marriage as spousal for tax purposes. A donation made before will not affect anything and it will be seen as a donation between spouses and therefore tax free.


Ohsoworried says:
23 February 2016 at 13:58

Thanks, please also respond regarding the marital status to select on tax return and if and how to declare the donation between spouses to SARS.


TaxTimTaxTim says:
23 February 2016 at 15:28

You do not need to declare donations between spouses on you tax returns.


Get Tax Deadline Reminders, News and Tips
 

We'll tell you when you need to file, along with tax tips and updates.

Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →