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How to declare a gift received by a non-resident in an ITR12 tax return?

24 February 2015   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

Q: What is the correct way to declare in an individual tax return, when a non-resident (who immigrated in Jan 2015 to SA), received a gift from a friend overseas for R6 million in cash? Is this amount taxable? 

A: In our view the donation received from a non-resident would be capital in nature and not subject to donations tax for the non-resident donor or resident done. However the amount should still be disclosed in the ITR12 tax return as a non-taxable amount (See SARS ITR12 Guide at 5.8).

Disclaimer: Nothing in this query and answer should be construed as constituting tax advice or a tax opinion. An expert should be consulted for advice based on the facts and circumstances of each transaction/case. Even though great care has been taken to ensure the accuracy of the answer, SAIT do not accept any responsibility for consequences of decisions taken based on this query and answer. It remains your own responsibility to consult the relevant primary resources when taking a decision.


Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.


The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

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