Donations tax w.r.t children
By Marc Sevitz · Updated
You can loan your child the difference, but you must be careful to charge a normal interest rate or risk SARS deeming the amount provided as a donation. You can write off R100 000 per year against the loan as a donation. You are also allowed to give money to your spouse and they can also donate R100 000 to your children. Transfers between spouses are tax free.