Donations Tax

Donations tax is payable at the rate of 20% on the taxable value of all property donated on or after 1 October 2001.

Exemptions include donations to:

  • Certain public benefit organisations as approved by SARS
  • The donor's spouse, including donations for the benefit of the spouse under a duly registered ante nuptial contract.
  • Anybody - the first R100 000 of assets donated in each year by a natural person.
  • Government, provincial and local authorities.
  • In the case of a taxpayer who is not a natural person, the exempt donations are limited to casual gifts not exceeding R10 000 per annum in total.
  • Bona fide maintenance payments
  • Donations where the donee will not benefit until the death of the donar
  • donations made by companies which are recognised as public companies for tax purposes
  • Donations cancelled within 6 months of the effective date
  • The property disposed of under and in pursuance of any trust
  • Donation of property or a right in property situated outside SA if acquired by the donor, before becoming resident in SA for the first time or by inheritance/donation from a non-resident
  • Donations between companies forming part of the same group of companies