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Will I receive 100% of the value of a charitable donation back as a tax-refund?
Posted 5 January 2015
I understand that I can claim deductions for charitable donations to a registered PBO (with a section 18A certificate) up to 10% of my taxable income. I am wondering whether I will receive the full value of my donation back with my tax refund or only a portion of it. I like the idea of donating up to 10% of my taxable income, as I will have a say in where it goes. However, this will be a sizeable portion of my income and can only do this if I'm sure of receiving the income back in my tax refund.
TaxTimsays: 6 January 2015 at 9:09
You will not receive the full value back but only the amount times the tax bracket percentage you are in. ie a R10000 donation if you are in the 40% bracket will yield a R4000 refund.