When Is Donations Tax Not Due?

In terms of the Income Tax Act, the following donations are exempted:

1. between spouses who are not separated;
2. were the donee will not benefit until the death of the donor;
3. which are cancelled within six months from the date upon which it took effect;
4. of property which is situated outside the Republic and was acquired by the donor:
   1. before becoming a resident of the Republic for the first time;
   2. by inheritance from a non-resident of the Republic;
5. of property disposed of under and in pursuance of any trust provision;
6. of property that consists of a right to use or occupy property that is used for farming purposes, and the donee is a child of the donor;
7. to certain Public Benefit Organisations;
8. by any company which is recognised as a public company; and
9. between companies that is members of the same group of companies.

Posted on: June 10th, 2016

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.