Donations Tax Calculator

Donations tax is a tax of 20% levied on the value of property donated by any resident of South Africa, as governed by Section 54-64 of the Income Tax Act. The tax is paid by the donor (the person making the donation), not the recipient. If the donor fails to pay, SARS may recover it from the donee. The rate increases to 25% on cumulative donations exceeding R30 million in a donor's lifetime.

Natural persons (individuals) receive an annual exemption of R100,000 per tax year. This means the first R100,000 of donations made in a tax year is tax-free. Non-natural persons such as companies and trusts receive a smaller annual exemption of R10,000 per year. The exemption resets at the start of each tax year (1 March).

Not all charities qualify for the exemption — only organisations that have been approved by SARS under Section 18A of the Income Tax Act as public benefit organisations (PBOs). Donations to approved Section 18A PBOs are fully exempt from donations tax. Additionally, the donor may claim a tax deduction (limited to 10% of taxable income) for donations to these organisations.

The 25% rate applies to the portion of cumulative lifetime donations that exceeds R30 million. This is calculated on a cumulative basis across all tax years — once a donor's total lifetime donations (above the annual exemptions) exceed R30 million, the excess is taxed at 25% instead of 20%. This higher rate was introduced in 2018 to align with estate duty rates.

Yes, donations above the annual exemption must be declared to SARS. The donor must submit a donations tax return (IT144) and pay the tax within three months after the end of the month in which the donation was made. For example, if you make a donation on 15 April, the tax is due by 31 July. Failure to pay on time may result in interest and penalties.