In terms of the Income Tax Act, the following donations are exempted:
- between spouses who are not separated;
- were the donee will not benefit until the death of the donor;
- which are cancelled within six months from the date upon which it took effect;
- of property which is situated outside
the Republic and was acquired by the donor:
- before becoming a resident of the Republic for the first time;
- by inheritance from a non-resident of the Republic;
- of property disposed of under and in pursuance of any trust provision;
- of property that consists of a right to use or occupy property that is used for farming purposes, and the donee is a child of the donor;
- to certain Public Benefit Organisations;
- by any company which is recognised as a public company; and
- between companies that is members of the same group of companies.
Posted on: June 10th, 2016
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.