Donation tax

Donation tax

Framework for calculating:
1. Was property disposed of by a resident? (s.54)
  1. No
  2. Yes
    1. Was the property disposed of under any donation or deemed donation? (s.54, s.55 & s.58)
      1. No
      2. Yes
        Is the donation exempt from donation tax? (s.56(1))
        Yes
        No
        Is the donation a reasonable contribution towards maintenance of a person? (s.56(2))
        Yes
        No donation tax
        No
        Calculate TAXABLE donations = Total donations less annual exclusion ( non-natural=R 10,000 ; natural=R 100,000)
        Residual x 20%
        Payable at the end of the month following the month when donation takes effect
Do not apply to non-residents
CGT effect
1. Should be included in base cost (par 22)
Deemed donations
1. Value of the property less consideration payable by the acquiree
2. Property disposed of for consideration not appropriate as per Commisioner
Specific exemptions (s.56(1))

Resource summary

	Created by meyer cohn over 8 years ago