Donations Tax | South Africa Tax Guide 2006

Donations Tax is payable by any individual living in the Republic of South Africa, or any South African company or one managed or controlled in the Republic, on the value of any gratuitous disposal of property including the disposal of property for inadequate consideration and the renunciation of rights.

Principal Exemptions:

  1. Donations between husband and wife.
  2. Donations to charitable, ecclesiastical and educational institutions, and certain public bodies in the Republic of South Africa as approved by the Minister of Finance.
  3. Casual donations up to R10 000 per year by donors other than natural persons.
  4. Donations by natural persons on or after 1 March 2006 not exceeding R50 000 per year.
  5. The donation of assets situated outside the Republic, subject to certain conditions.

Rates:

Donations tax is payable within 3 months after the donation at a flat rate of 20% on all donations on or after 1 October 2001.