Donations Tax Calculator South Africa
Calculate SARS donations tax on property and asset donations — 2025/2026 rates
Three levels of detail — pick yours
Donor type + donation value → donations tax after R100,000 annual exemption.
Tax calculation breakdown, spousal exemption analysis, and annual spreading planner.
5-year multi-year donation plan and Section 7C interest-free loan deemed donation analysis.
What Is Donations Tax in South Africa?
Donations tax is a tax levied on the donor (the person giving the property or asset) when a donation is made. It is governed by the Income Tax Act and collected by SARS. The purpose is to prevent individuals from avoiding estate duty by giving away assets before death.
The tax rate is 20% on the cumulative value of taxable donations up to R30 million (in a lifetime), and 25% on amounts above R30 million. Individuals receive an annual exemption of R100,000 — meaning the first R100,000 donated each tax year is tax-free. Companies and trusts have a much smaller exemption of R10,000 per year.
Key Donations Tax Rules
- Annual exemption: R100,000 per individual donor per tax year (1 March – end February). The exemption applies to all donations combined in the year, not per donation.
- Spouse exemption: Donations between spouses are completely exempt from donations tax — there is no limit on spousal donations.
- PBO exemption: Donations to approved Public Benefit Organisations (charities registered under s18A) are exempt.
- Payment responsibility: The donor pays the tax. If the donor fails to pay, the recipient becomes jointly and severally liable.
- Due date: Donations tax is due within the first 30 days of the month following the month of the donation.
- Property valuation: For property donations, the market value at date of donation is used.
Donations Tax Formula
Donations Tax = 20% × min(Taxable Amount, R30M) + 25% × max(0, Taxable Amount − R30M)
Worked Example
Ravi wants to give his adult daughter a property valued at R2,000,000. This is his first donation in the tax year. He is an individual donor.
Annual exemption: R100,000 (fully available, no prior donations).
Taxable amount: R2,000,000 − R100,000 = R1,900,000
Donations tax at 20%: R1,900,000 × 20% = R380,000
Ravi must pay R380,000 to SARS within 30 days of the month following the donation. His daughter receives the property valued at R2,000,000 but Ravi has an out-of-pocket cost of R2,380,000 in total. Note: a spousal donation between Ravi and his wife would be fully exempt.
Frequently Asked Questions
Can I donate property to my spouse without paying donations tax?
Yes. Under section 56(1)(b) of the Income Tax Act, donations between spouses are completely exempt from donations tax. There is no limit. This applies to legally married couples; the exemption does not apply to life partners or cohabiting couples who are not legally married.
What happens if I donate property below market value?
SARS uses the market value of the donated property, not the consideration received. If you "sell" a property to a family member at below market value, the difference between the market value and the selling price may be deemed a donation. For example, if a property worth R3,000,000 is sold for R1,000,000 to a relative, SARS may treat the R2,000,000 difference as a donation subject to donations tax.
Does donations tax apply when transferring property into a trust?
Transferring property into a trust for no consideration (as a donation) is subject to donations tax. However, if property is sold to a trust at market value and the trust issues a loan account to the founder, there is no immediate donations tax — though the annual forgiveness of interest or capital on that loan may trigger donations tax over time.
Donating assets to a trust is a common estate planning strategy, but it must be done correctly with professional advice to avoid unintended tax consequences.
Are donations to children subject to donations tax?
Yes. Donations to children — whether cash or property — are subject to donations tax above the annual R100,000 exemption. There is no additional exemption for gifts to children (unlike some other countries). The R100,000 exemption applies to the total of all donations made by a donor in the tax year, not per recipient.
Is there a link between donations tax and estate duty?
Yes — donations tax and estate duty are linked anti-avoidance taxes. Donations tax prevents estate duty avoidance by taxing lifetime transfers of wealth above the exemption. The rates are set at the same level (20%/25%) to make it neutral whether wealth is transferred during life (donations tax) or at death (estate duty). Donations tax paid during your lifetime is deductible from estate duty payable at death to prevent double taxation on the same assets.