Donations to minors

Posted 23 April 2024

If I donate R50 000 to each of my minor children (directly to their bank accounts) will R100 000 be tax deductible in my income tax return?

What must I do with the auto-assessment from SARS?

Updated 3 May 2022

I received an SMS from SARS which says something about an auto-assessment. When I login to eFiling I see there is an option to accept or edit it. Are there any risks involved with accepting it? What should I look out for? Please help, I know nothing about this new SARS process.

Transfers from spouse & car sales

Updated 21 April 2022

I have 2 questions

Question 1: My wife sometimes transfers some money into my account to pay a certain bill. The amounts total less than R100,000, it is never anything above that. Do I need to declare this under the TaxTim section question "Did you earn or receive any other money that you think should NOT be taxed?"? Will I be taxed on that amount?

Question 2: I sold my car and bought another car. Do I need to declare the amount I received after settling the remaining insta...

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What happens once I've submitted my tax return form?

Posted 6 April 2022

One of the questions most asked when it comes to tax season, is “what happens now that I’ve submitted my income tax return, when do I get my refund?”’

If you’re due a tax refund then you will probably get the money deposited into your account within a few days. SARS will also email or SMS you telling you that an IT34 (Summary of your return and refund) and ITSA (Income Tax Statement of Account) have been issued. They will detail your tax refund (tax back) if any. So look forward to that deposit into your account. ...

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Shareholder Loan and own company

Updated 5 April 2022

I have a loan with my company (payable from the company). I would like to know what the effects are that we need to consider regarding interest-free loans? I am aware that we can create a tax deduction for the company and I will have the interest exemption, but I feel there is something I'm missing?

Also if the shareholder already exceeded his R23k exemption, will it be fine if we do not levy any interest on this loan? Will there be any unknown tax consequences for that?

...

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Directors of company with no IRP5's

Posted 21 June 2017

My wife and I are directors of our company. We have not paid ourselves a salary as such, but took money against a loan account during the year. We are provisional tax payers. We don't have any IRP5's as we haven't issued any in our company. How do we rectify this or account to SARS?

Donation deduction on school fees

Posted 26 May 2017

If I pay school fees for a previously disadvantaged child - who isn't a family member - and the school isn't a registered PBO. Can I deduct the school fees as a donation?

Tax Deductible Donations

Posted 24 April 2017

I made a tax deductible donation in the previous tax year, but the amount was over the allowable 10% deduction limit (as reflected in my ITA34). Will the excess amount be automatically added to the new tax year as an add-back, or do I need to add the excess amount to the current years tax deductible donations?

Grandparent paying school fees for grandchildren?

Posted 11 April 2017

Is it allowed for a grandparent, who's South African, to pay his South African grandchildren's school fees without it counting as a donation?

Income from overseas

Posted 10 April 2017

My wife does some occasional freelance work for a company overseas. As well as here in South Africa.
Her local freelance brings in about R3500 per month. She doesn't currently pay provisional tax as the amounts are too small. She's recently taken on some international freelance work that amounts to
about R10500 every second month or so. What are the tax implications of the international income?
Does she need to declare it and can she declare it as a donation?

Income earned by a minor from a tax free investment?

Posted 23 March 2017

Do I have to declare income earned from a Tax Free Savings Account opened for my minor child on my tax return? I've contributed in my personal capacity to my own Tax Free Savings Account and I've also opened and contributed into a Tax Free Savings Account for my minor child.

Children receiving gift money

Posted 20 March 2017

My brothers wish to gift my children money. Which I will be using on daily expenses and school fees. Will I be liable for tax for these incomes? Or will my brothers be liable for this? Is there a taxable limit? And are there any tax avoiding measures for single moms?

Donation to family members

Posted 1 February 2017

I gave my mother and sister R25000 each, can I deduct it as an expense against my income and how much donations tax should I pay on it?

Tax on donation

Posted 1 February 2017

if I donate my clothes, and I get paid for it, can I claim a tax deduction for the expense?

Is a monetary donation to my unemployed spouse tax deductible

Posted 1 February 2017

My husband is 61 years old and unemployed, I support him while I am full time employed. Is this contribution tax deductible?

Money gift to friends, tax requirements

Posted 1 February 2017

If I make money selling my book (I pay my normal tax on the income) and then want to give cash gifts of R50 000 each to 6 of my friends who need the financial help, do they have to pay tax on the received amount or do I have to pay extra tax on the money I give away?

Old donation, can I claim it now?

Posted 4 October 2016

In 2013 I made a donation of R5000 to a registered charity which I forgot to claim.
Is it possible to claim it in my 2015/2016 tax return?

Tax deduction for family donations?

Posted 20 June 2016

A) Can I claim a Donation deduction for the following:

1. Son's university fees, paid on his behalf. 2. Monthly donation to my sister. 3. Monthly donation to religious institution / organisation. B) If deductible, what proof is required?

Thanks

Long partnership regarded as marriage for tax?

Posted 9 June 2016

I have been living with a woman as husband and wife for 17 years and see no point in getting officially married. With regard to tax rules such as: tax free gift/donation between spouses and tax rules regarding disposal of residence to spouse on death, apply to me? I have in mind donating money to my partner which she will invest to achieve a tax saving on capital gains as she has small income. She would also be able to donate to my children if required, to take advantage of the R100k tax free am...

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Donations between spouses

Posted 7 June 2016

My companion and I have been living together for many years however we are not married. He recently sold his house and the money was used in purchasing another house but in my name and not his. Will I have to pay tax on that money? We are both pensioners. I have also had to draw money from my investments to pay for the shortfall as the house I bought cost more than the amount received from selling his house.

Which proof of expenses should I hold onto?

Posted 2 June 2016

Which receipts should I take a picture of?
Or, which expenses should I note down in preparation for tax time?

Members loan

Posted 1 June 2016

I have a member loan account of approx R1m rand. I wish to reduce this by R100k by transferring this money to my personal bank account. The members loan account is interest free. What are the tax implications for my company and my personal tax? and how should I declare it on my tax returns.

Donation from father to help with bond

Posted 30 May 2016

My dad wants to help us with our house bond by paying R100 000 into our bond account. Does this have any tax implications?

Loan to parents

Posted 30 May 2016

I loaned my parents money to purchase a vehicle in December last year. As my mum was going to be the primary driver, it was registered in her name. It was agreed though that my dad would repay the loan at some point in the future when they dispose of their current property. This was obviously an informal agreement but I am concerned that SARS will see this as a "donation" rather than a loan. Is there anything I can do to prevent this from being viewed as a "donation" and having to pay donation ...

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Is money received from an NPO taxable?

Posted 26 May 2016

A friend of mine receives money from a NPO regarding admin services performed to that NPO. Should it be included in her gross income?
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