A taxpayer, which includes an individual, trust or company, making a bona fide donation in cash or of property in kind is entitled to a deduction from the taxpayer’s taxable income provided the donation is actually paid or transferred during the year of assessment to the section 18A-approved organisation.
Any claim for a tax deduction from taxable income of a taxpayer will be allowed only if supported by –
- a section 18A receipt issued by a section 18A-approved organisation;
- There is a limitation on the amount of a donation that will qualify as a tax deduction from the taxable income of a taxpayer. Any excess amount which is disallowed solely for the reason that the donation exceeds the amount allowed to be deducted from the taxable income of the taxpayer for a year of assessment may be carried forward to the succeeding year of assessment for purposes of section 18A.
The donation is limited to 10% of your taxable income.
Download official communication from SARS here Tax Exemption