Donations tax is payable at the rate of 20% on the value of all property donated on or after 1 October 2001.
Exemptions include donations to:
- Certain public benefit organisations as approved by SARS
- The donor’s spouse, including donations for the benefit of the spouse under a duly registered ante nuptial contract.
- Anybody – the first R100 000 of assets donated in each year by a natural person.
- Government, provincial and local authorities.
- In the case of a taxpayer who is not natural person, the exempt donations are limited to casual gifts not exceeding R10 000 per annum in total.