Cape Coastal Homes Logo
You are here: Cape Coastal Homes / Latest News / Taxed When Making Donations

Taxed when making donations?


Taxed when making donations?

In South Africa we are subject to donations tax, so simply giving away or selling your assets for less than their actual market value, with no obligation to receive payment in return, may create a tax liability. 

Donations tax is payable at a rate of 20% on the value of a property and must be paid by the person making the donation to the South African Revenue Services within three months of the date of the donation. 

But note:

  1. Some donations are free from donations tax. See the list provided in the Income Tax Act here. These include donations between spouses and donations to approved public benefit organisations.

  2. Natural persons receive an annual donations tax exemption of R100,000 while all other donors pay donations tax on any donation exceeding R10,000 during any year of assessment.

If you have further questions in this regard, contact us at STBB. 

Author STBB
Published 06 Nov 2017 / Views -
Disclaimer:  While every effort will be made to ensure that the information contained within the Cape Coastal Homes website is accurate and up to date, Cape Coastal Homes makes no warranty, representation or undertaking whether expressed or implied, nor do we assume any legal liability, whether direct or indirect, or responsibility for the accuracy, completeness, or usefulness of any information. Prospective purchasers and tenants should make their own enquiries to verify the information contained herein.