Donations tax to my sister

By Marc Sevitz · Updated

Frank

Frank said:
22 February 2016 at 19:35

Hi Tim I recently bought my sister a car to the value of R150k, do I pay 20% donation tax on the full amount?
TaxTim Marc

TaxTim Marc said:
23 February 2016 at 9:58

There is an annual exemption of R100,000 per taxpayer per year - therefore you would pay on R50,000 X 20% = R10,000.
Please read our blog on Donations Tax for further clarification.