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Brendon says: 6 March 2024 at 10:58 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? |
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TaxTim says: 6 March 2024 at 12:51 No, unfortunately you cannot claim this as a deduction for tax purposes. In fact, if you were to donate more than R100 000, you would be liable to pay donations tax. You can donate up to R100 000 per tax year, without having to pay donations tax. In other words, you may make multiple donations in a tax year, and as long as the total value of the donations doesn't exceed R100 000, there'll be no donations tax payable. You will need to pay donations tax at 20% on donations made which are greater than this limit. If you were to exceed the R100 000 limit in a tax year, you would need to fill in a IT144 form and send it to SARS. It's important to note that donations tax must be paid by the end of the month following the month during which the donation was made. Payment can be made via SARS eFiling. Donations are only tax deductible if they are made to a registered Public Benefit Organisation (PBO) and they are able to supply you with a Section 18A tax certificate. You can claim up to 10% of your taxable income as a deduction. If you have donated in excess of 10% of your taxable income, you can carry forward this excess to be deducted the following tax year. Click here for more information. |
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