public benefit organisation
If the PBO qualifies in terms of Section 18A of the Income Tax Act, a donor can deduct the value of the donation from their own income tax, subject to certain ceilings. Donations made to a charity that is not
To determine the dutiable value of your estate, keep in mind that certain assets, such as bequests to your surviving spouse, bequests to PBOs, and the proceeds of life policies payable to your spouse, and business assurance polices, are excluded.
As legislation currently stands, you can invest a maximum of R36 000 per year towards tax-free savings with a lifetime contribution maximum of R500 000 which, while not sufficient as a retirement funding vehicle, can be used to supplement one’s
Once you’ve maximised your retirement fund contributions, consider enhancing your long-term savings by investing through a tax-free savings account (TFSA). Or, if you already have a TFSA in place, consider maximising your annual allowable contributions.
If you’ve received a donation or a gift from someone, note that there are no tax consequences for you as the donee. However, as SARS requires you to declare all taxable and non-taxable income, you will need to declare it
Tax legislation permits you to invest up to 10% of your taxable income towards charity on a tax-deductible basis, although it is important to know that this tax deduction is not automatic.
