For taxpayers that are in a position whereby they are deemed to have made a donation under the provisions of Section 7C, they should note that the deadline for payment of any donations tax falls on 31 March 2023. This would relate to deemed donations for the year of assessment ended 28 February 2023.

Failure to make payment of the donations tax by the due date will result in interest being incurred on the late payment of the tax.

The official rate of interest as prescribed by SARS is used when determining the value of the deemed donations. The official rate of interest at the end of February 2022 was 5%, but this was subject to a number of increases during the course of the February 2023 tax year, resulting in a rate at the end of February 2023 of 8.25%. A natural person is however entitled to an annual donation tax exclusion, that being on the first R100 000 of donations made. 

Taxpayers are advised to address any of their Section 7C deemed donation exposures before the deadline, and to contact a Tax Practitioner if they require any further assistance.

Eileen Goosen
Manager: Trust Department, Johannesburg

Related articles