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.
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.