The tax-deductible limit for donations, currently 10 per cent of taxable income, has been increased with an additional 10 per cent in respect of donations in cash or of property in kind donated and actually paid or transferred to the Solidarity Fund from April 2020 to September 2020 of the donor to the Solidarity Fund. There will, thus, be a limit of 10 per cent for any qualifying donations and an additional 10 per cent for donations to the Solidarity Fund.
Below is a table reflecting an example of the calculations based on taxable income of R100 000:
|Taxable Income||4011 Donation||4055 Solidarity Fund Donation||Allowable deduction for code 4011||Allowable deduction for code 4055||Allowable deduction for codes 4011+ 4055||Carry Over on code 4011|
|R 100 000.00||R 0.00||R25 000.00||R0.00||R20 000.00||R0 + R20 000.00||R5 000.00|
|R 100 000.00||R10 000.00||R25 000.00||R10 000.00||R10 000.00||R20 000.00||R15 000.00|
|R 100 000.00||R15 000.00||R5 000.00||R10 000.00||R5 000.00||R15 000.00||R5 000.00|
|R 100 000.00||R25 000.00||R10 000.00||R10 000.00||R10 000.00||R20 000.00||R15 000.00|
|R 100 000.00||R5 000.00||R15 000.00||R5 000.00||R10 000.00 + (R5 000.00)||R20 000.00||R 0.00|