DEDUCTIONS

2325. Donations

JULY 2014 – ISSUE 178

“Social responsibility is an ethical theory that an entity, be it an organisation or individual, has an obligation to act to benefit society at large.”

When your moral compass and sense of social responsibility lead you to acts of benevolence, you could, in addition to the sense of wellbeing that comes from helping others, also qualify for a reduction in your tax bill. In recognition of the valuable role these donations from individuals and businesses play in these tougher economic times, government has legislated further concessions to allow greater tax relief in respect of such donations.

Generally, donations made to certain organisations established to carry out public benefit activities will qualify as a tax deduction. However, donations made or transferred on or after 1 March 2014 will also benefit from certain concessions.

To whom can you donate? Qualifying organisations

How much can you claim as a tax deduction?

An additional concession  - roll over treatment of excess

How it affects PAYE

What else can you give and how will it work? Donations other than cash

What else should you know?

Grant Thornton
ITA: Section 18A and the Fourth Schedule