Donation. Is it taxable by the receiver?
By Evan Robinson · Updated
My Father who is a non-tax resident of South Africa would like to assist my wife and I with a donation of R500 000 to help us to buy a house. Please advise if I receive this donation if it is required that I declare it it on my tax return and if it is subject to any tax?
Since your father is a non-tax resident, there won't be any tax payable in South Africa on the donation made to you.
If he was a South African tax resident, he could donate tax-free up to R100,000 only, and anything above this amount would be taxed at 20%. (i.e donations tax is payable by the donor)
In the opening questions of your tax return, you should answer the question below as "yes":
"Did you receive any income considered as non-taxable?"
And then scroll down and include this in your tax return as a "donation".
If he was a South African tax resident, he could donate tax-free up to R100,000 only, and anything above this amount would be taxed at 20%. (i.e donations tax is payable by the donor)
In the opening questions of your tax return, you should answer the question below as "yes":
"Did you receive any income considered as non-taxable?"
And then scroll down and include this in your tax return as a "donation".