Donations tax is generally levied on donations made by South African resident individuals and companies. For individual tax payers, donations tax is levied at a rate of 20% subject to certain exemptions available. Below is a summary of the main exemptions for individuals:
Donations between spouses;
Donations to approved scientific, cultural, educational or religious institutions;
First R 100,000 per year of assessment (natural persons only)(a husband and wife are each entitled to this exemption);
Bona fide maintenance payments; and
Casual gifts by a donor other than a natural person – maximum R 10,000 per tax year.
Please note that the above is not a complete list of exemptions. In addition, is very important to ensure that all required documentation is completed and submitted in respect of all donations made.