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Is donations tax not double taxing?

Posted 14 September 2015 under Tax Questions


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Cobus says:
14 September 2015 at 12:15

Hi, I am not sure about donations tax, why do I need to pay tax on donations I make if I have already paid income tax on this money? The way I see it this is double taxing? do I understand this correctly?
I pay 40% tax on my income and now when I want to give someone more than R 100 000 for whatever reason I now have to pay an additional 20% of tax on that as well? do I understand this correctly?

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TaxTimTaxTim says:
14 September 2015 at 12:20

Unfortunately, you are correct - assuming you are a South African resident making a donation, you will need to pay 20% tax on the amount donated which exceeds R100,000 in a tax year.


Cobus says:
14 September 2015 at 12:25

Can I deduct the first R 100000 donation money from my taxable income? And the money I donate to my wife? is there a way to do income splitting to reduce our total taxable income?


TaxTimTaxTim says:
14 September 2015 at 12:36

There is no donations tax on money donated to a spouse.
You can only claim a deduction against your taxable income if you are donating to an approved Public Benefit Organisation.

Who are you planning on donating to?


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