Do I declare a gift of R100,000
By Marc Sevitz · Updated
The person I was working for in a personal capacity for 10 years as an assistant emigrated to the USA. She wants to give me a thank u parting gift of R100,000. I am a provisional tax payer and pay tax on the R10,000 she has been paying me monthly. Do I have to declare it on my tax?
Yes, you should declare it as an "amount considered non-taxable"
It is a donation and therefore you won't need to pay tax on it.
Donations tax is paid at 20% by the donor on amounts exceeding R100,000 per year. Therefore assuming your employer was a SA tax resident, if she gave any other gifts in addition to yours, she should be aware that she would need to pay donations tax at 20% on these amounts.
It is a donation and therefore you won't need to pay tax on it.
Donations tax is paid at 20% by the donor on amounts exceeding R100,000 per year. Therefore assuming your employer was a SA tax resident, if she gave any other gifts in addition to yours, she should be aware that she would need to pay donations tax at 20% on these amounts.