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Donations FAQs

Posted 22 February 2017

Are donations to political parties’ tax deductible?
They are deductible if the political party is a registered Public Benefit Organisation/Not-For-Profit and is registered with SARS.

Are church donations deductible?
The church should give you a receipt with a PBO/NPO/NPC number, if they don't have a number then you cannot claim the deduction. The number needs to start with a 9. It should be either 9 or 10 digits. 

Foreign gift in the form of donation OR Donation from overseas OR Informing SARS of inheritance OR Donations received from overseas
Donations Tax doesn't apply to non-residents. I.e. If your aunt living in the UK donates some of her hard-earned pounds to you, from funds she has earned while working overseas, she won't be liable for any Donations Tax in South Africa.

Do you need to fill in an IT144 if you are making a donation of R100 000 or less to your child?
No, you do not need to complete an IT144 nor put anything on the tax returns. These donations are ok within the requirements of donations.

Does pocket money count towards the R100 000 donations threshold?
Pocket money has never really been considered a donation and SARS shouldn't have a problem with this.

Donations tax with regards to children? OR What is the tax situation with regards to a donation of less than- R100 000 from a child to a parent?
A taxpayer can donate up to R100 000, in total, per tax year and not have to pay any Donations Tax. Any amount over that will incur a donations tax of 20% which he will have to pay over to SARS.

Donations between spouses for tax purposes, how does it work? 
If either of the spouse gives money to their spouse, then this is tax-free regardless of the amount. Donations between spouses are not taxable.

Is donation received an income?
No, it is included under "amounts not considered taxable". This is true when the donor pays any taxes owing. 

Tax implications of Grandparent(s) paying grandchildren(s) school fees.
There is no tax deduction nor will the grandchild be liable to pay tax on this amount if it is paid directly to the school.

What are the tax implications for someone who has retired?
Are they earning an income, if yes, they will be taxed per the tax bracket they fall in.

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