HomeHome SearchSearch MenuMenu Our productsOur products

Did you know: SARS rewards good deeds?

by , 18 July 2014
There's more and more pressure these days for companies to go green or give back to the community. The sad truth is being the 'good guy' can be a costly exercise.

After all, times may be hard for your company too.

But there's at least one reason I can think of why you can and should give a little back. It all has to do with the fact that SARS actually rewards good deeds...

*********** Product endorsement  ************
Be invisible to SARS
 
Six reasons SARS will audit you...
 
*****************************************
 

SARS rewards donations with tax deductions

 
 If you make a donation to a Public Benefit Organisation (PBO), SARS will actually let you claim the donation as a tax deduction.  
 
A donation is anytime you give something away for free or for a much lower price than it's actually worth.
 
Just make sure that:
 
Firstly: You make the donation to a SARS approved PBO. You can find the full list of these organisations here
 
Secondly: The donation doesn't exceed 10% of your company's taxable income for the year.
 
If you forget to obey either of these rules, you'll have to pay donation tax...
 

Here's why you have to pay donation tax if you forget about these rules

 
SARS makes you pay donation tax because otherwise it's too easy for companies to dispose of assets as 'donations' and avoid Capital Gain Tax.
 
This means you have to pay donation tax of 20% of the value of the donation. And this doesn't just apply to money. 
 
This applies to donations of:
 
- Homes;
- Farms;
- Cars;
- Trademarks; 
- Shares; and
- Anything, tangible or intangible, that has value.
 
So ensure you follow the rules around making donations to PBOs to ensure you get the reward of a donation tax deduction instead of extra tax.
 
*********** Best seller  *************
Are your capital gains costing you too much tax?
 
Get your copy of Capital Gains Tax 101: Your ultimate guide to slashing Capital Gains Tax today so you don't pay a cent more to SARS than you have to.
*********************************

Vote article

Did you know: SARS rewards good deeds?
Rating:
Note: 5 of 1 vote


Related articles




Related articles



Related Products