Page 44 - GA Maclachlan Tax Guide 2024

DONATIONS TAX

Donations Tax is payable by any South African resident� The donations tax
provisions do not apply to non-residents even if they donate South African
assets� Donations tax is payable on the value of any gratuitous disposal of
property (including the disposal of property for inadequate consideration) and
the renunciation of rights�

Principal exemptions
■ Donations between spouses
■ Donations to charitable, ecclesiastical and educational institutions, and
certain public bodies in the Republic of South Africa (limited to certain
thresholds)
■ Donations by natural persons not exceeding R100 000 per year
■ The donation of assets situated outside the Republic, subject to certain
conditions
■ Donations by companies not considered to be public companies up to
R10 000 per annum
■ Donations where the donee will not benefit until the death of the donor
■ Donations made by companies which are recognised as public companies for
tax purposes
■ Donations cancelled within six months of the effective date
■ Property disposed of under and in pursuance of any trust
■ Donations between companies forming part of the same group of companies
■ Reasonable bona fide contributions to the maintenance of individuals
Rates
Donations tax is payable at the end of the month following the month in
which the donation was made at a flat rate of 20% on the first R30 million
donations� Donations tax on the donations in excess of R30 million will be 25%�
Only donations from 1 March 2018 will count towards the R30m threshold�

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