Donation Tax Declaration

In South Africa, individuals can receive up to R100,000 in donations per tax year without incurring donations tax. This exemption applies to the total value of all donations received from a single donor within a tax year. Any amount exceeding this threshold is subject to donations tax, which is levied at 20% on the portion up to R30 million, and 25% on amounts exceeding R30 million. 

Key Points:

• Donor's Responsibility: The donor is responsible for paying the donations tax. If the donor fails to pay, both the donor and the recipient (donee) may become jointly liable for the tax. 

• Exemptions: Certain donations are fully exempt from donations tax, including:

  • Donations between spouses.

  • Donations to approved Public Benefit Organisations (PBOs).

  • Bona fide contributions towards the maintenance of any person, provided the amount is reasonable in the opinion of the Commissioner. 

• Reporting Requirements: Recipients of donations are not taxed on the received amount but must declare it in their tax returns as "amounts considered non-taxable.

It's important to note that the R100,000 exemption is per donor per tax year. Therefore, if you receive donations from multiple donors, each donor's exemption is calculated separately