Do I pay tax on a gift?
By Marc Sevitz · Updated
If my mother wants to give me a gift of R 100 000. 00 cash to be transferred into my cheque account, do I need to declare this anywhere and will I pay tax on it?
A South African taxpayer can donate up to R100 000 per tax year and not have to pay any Donations Tax. Any amount over that will incur a donations tax of 20% which she will have to pay over to SARS. This would be the case if your mother was donating money to anyone else in a tax year in addition to the R100,000 gift she is giving you.
You should declare on your Tax Return (ITR12) that you received a donation under the "Amounts not considered taxable" section.
I am assuming here that your mother is a South African tax resident. If she is not, then donations tax does not apply at all on donations from non-residents to SA residents.
Please register for TaxTim and let us assist you to complete and submit your Tax Return to SARS.
You should declare on your Tax Return (ITR12) that you received a donation under the "Amounts not considered taxable" section.
I am assuming here that your mother is a South African tax resident. If she is not, then donations tax does not apply at all on donations from non-residents to SA residents.
Please register for TaxTim and let us assist you to complete and submit your Tax Return to SARS.