Page 49 - Nexia SAB&T Property & Tax Guide 2022

5. Administrative requirements Provided the Trustees are authorised by the trust deed
to delegate their authority to act, they must then issue the necessary authority for
one Trustee to act on their behalf, failing which, all Trustees are required to sign the
necessary documentation. A prior resolution of Trustees is required authorising the
purchase or sale of any immovable property in the name of the Trust. If this is not
effected, all of the Trustees will be required to sign the Deed of Sale.

DONATIONS TAX

Donations Tax is payable by any South African resident. The donations tax provisions do not
apply to non-residents even if they donate South African assets. Donations tax is payable
on the value of any gratuitous disposal of property (including the disposal of property for
inadequate consideration) and the renunciation of rights.
PRINCIPAL EXEMPTIONS
◆ Donations between spouses
◆ Donations to charitable, ecclesiastical and educational institutions, and certain public
bodies in the Republic of South Africa (limited to certain thresholds)
◆ Donations by natural persons not exceeding R100 000 per year
◆ The donation of assets situated outside the Republic, subject to certain conditions
◆ Donations by companies not considered to be public companies up to R10 000
per annum
◆ Donations where the donee will not benefit until the death of the donor
◆ Donations made by companies which are recognised as public companies for tax
purposes
◆ Donations cancelled within six months of the effective date
◆ Property disposed of under and in pursuance of any trust
◆ Donations between companies forming part of the same group of companies
◆ Reasonable bona fide contributions to the maintenance of individuals
RATES
Donations tax is payable at the end of the month following the month in which the donation
was made, at a flat rate of 20% on the first R30 million donations. Donations tax on the
donations in excess of R30 million will be 25%. Only donation from 1 March 2018 will count
towards the R30 million threshold.
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