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Is there donations tax on a cash gift received from overseas?

10 March 2015   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

Q: A resident of SA has been gifted 10,000 euros from a relative overseas. Is there a tax implication on this?

A: From a South African perspective donations tax is imposed in terms of s 54 of the Income Tax Act and payable by any "resident” donor. A non-resident is therefore not liable for donations tax in the Republic.

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.


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