What is it?
A donation takes effect when all legal formalities for a valid donation have been complied with (section 55(3)).
Donations Tax Rate
- in determining the R30 million threshold, the aggregate value of property donated commences from 1 March 2018 to date of current donation. Any donations made prior to 1 March 2018 must not be taken into account;
- the aggregate value of property to determine the R30 million threshold is calculated after deducting any exemptions (s56);
- where the donor has exceeded the R30 million threshold, all subsequent donations will be taxed at the rate of 25%.
Certain donations are completely exempt from donations tax.
For example, a donation made to a spouse; an approved public benefit organisation; any sphere of government; that is cancelled within six (6) months from the date that it took effect; etc (section 56(1)).
In the case of a donor who is not a natural person (for example, companies and Trusts), the exemption is limited to casual gifts not exceeding R10 000 per year of assessment (section 56(2)(a)).
The first R100 000 of property donated in each year of assessment by a natural person is exempt from donations tax (section 56(2)(b)).
So much of any bona fide contribution made by the donor towards the maintenance of any person. This exemption is limited to what the Commissioner considers reasonable (section 56(2)(c)).
Who is liable for donations tax?
What steps must I take?
When should it be paid?
How should it be paid?
Donations tax can only be paid via eFiling. Click here for more information on how to process an additional payment on eFiling.