Donations Tax




A “Donation” is the gratuitous disposal of a property in this case, without expecting something in return.

Donations tax applies to any individual, company or trust that is a resident as defined in section 1 of the Income Tax Act, 1962.



Donations by individuals: the first R100 000 of any bona fide donation will be free of donations tax. It should be noted that this amount is the maximum allowed (in totality) per year of assessment.

In other words, any tax free donations made by the donor, to individuals or otherwise, are capped at a TOTAL of R100 000 per year

A record of all donations, whether taxable or not, should be submitted on Form IT144.


A donation will be exempt if the total value of donations for a year of assessment does not exceed:

  • Casual gifts by companies and trusts: R10 000.
  • Donations by individuals: R100 000 (2008 to 2013 years of assessment) (section 56(2) (a) and (b)).


Amounts that exceed R100 000 for individuals are liable for 20% Donations Tax:

For amounts greater than R100 000 the person making the donation (donor) is liable for the tax but if the donor fails to pay the tax within the set period, the donor and donee are jointly and severally liable for the tax (section 59).

After making a donation you should fill in Form IT144 (Declaration by donor/donee) and send it to SARS with your payment.

Donations tax must be paid by the end of the month following the month during which the donation takes effect or such longer period as SARS may allow (section 60(1)). Payment must be accompanied by Form IT144 (section 60(4)).





In general, contributions to charitable organizations may be deducted up to 50 percent of adjusted gross income computed without regard to net operating loss carrybacks. See more HERE.


  1. Tax Information for Contributors
  2. Eight Tips for Deducting Charitable Contributions
  3. Organizations Eligible to Receive Tax-Deductible Charitable Contributions
  4. Filing Requirements and Required Disclosures

FAQ Donations


Where can I find out about Donations tax?

You can go to the SARS website

and you can download the LAPD-IT-G17 – Basic Guide to Tax Deductible Donations – External Guide here


How much can I donate without incurring donations tax?

A donation will be tax exempt if the total value of donations for a year of assessment does not exceed:

  1. Casual gifts by companies and trusts: R10 000.
  2. Donations by individuals: R100 000 (2008 to 2013 years of assessment) (section 56(2) (a) and (b)).


How will I know how much I have donated at any one time?

You will receive a monthly statement by email.


What happens when I have reached my R10,000 and R100,000 limits?

Once you have reached your R10,000 and R100,000 limits, you will be notified by email. You will then be responsible for managing any beneficiaries linked to any of your products and also for any tax implications as described here


Do I need to issue a tax donation certificate?

If your beneficiary requests one, you will be required to provide one.


What details must be put on the section 18A receipt?

A taxpayer will only be allowed to claim a deduction for a donation to a section 18A approved organisation if it is supported by a receipt issued by the organisation. The receipt issued by the organisation must include the following details:

  1. The reference number of the organisation issued to it by the Commissioner for purposes of section 18A;
  2. The date of the receipt of the donation;
  3. The name and address of the organisation issuing the receipt to which enquiries may be directed;
  4. The name and address of the donor;
  5. The amount or nature of the donation if not in cash;
  6. Certification that the receipt is issued for the purpose of section 18A and that the donation will be used exclusively for the activities which are approved for section 18A purposes;
  7. The receipt must be issued in the year when the donation is received by the organisation approved for purposes of section 18A.

These details can be found on the SARS site



Can I donate to anyone outside of my country?

No. Your beneficiary will have to provide banking details local to your country. No international payments will be allowed.


Who can I donate to?

You can make donations to anyone EXCEPT:

  • Political parties or affiliated companies
  • Any Religious institutions
  • Government institutions that are not Non-profit organisations
  • Any organisation or company that is operating illegally in any manner whatsoever.
  • Any organisation that has any links to theft, terror or drug or human trafficking.


How many donation beneficiaries can I have?

You can have up to FIVE beneficiaries.


How long will it take to register a beneficiary?

It will take 3 – 5 working days for South Africa. 3 – 10 working days for the USA.


Can I make anonymous donations?



Is there a charge for making or receiving a donation ?

No there is no charge.


How do I go about changing one or more of my beneficiaries?

You will need to send an email to requesting the changes.


How many times can I change my beneficiaries?

Each beneficiary can be changed once.


As a donor, if I wish to claim tax deductions, who can I donate to?

Donor Tax deductions (South Africa)

To whom can you donate? Qualifying organisations