How Tax Deductions Work
Like so many of us, you may have forgotten about some housekeeping in 2020. Maybe your donations, and your tax? Before the end of Feb, you are able to make the most of the entire year’s breaks. You can actually donate to Highway Hospice and it may not cost you a cent (if you follow the rules of SARS). Here are is an example of how it works followed by some conditions to which we comply for your benefit!
Sandy earns R10,000 a month and pays R900 a month into her Retirement Annuity. She also donates R100 a month to Hospice in honor of her father who was cared for in his last days. She earns R120,000 a year and her RA payments amount to R10,800 in the year (which is also Tax deductible). She is allowed to benefit from donation to Hospice to a maximum value of 10% of Taxable Income per tax year. In this case it
is R120,000 less her R10,800 RA leaving R109,200 as a taxable income of which 10% is R10,920. As Sandy donates R1,200 a year the entire amount will be permitted as a deduction from her tax due.
Some things to watch out for, and conditions of the deduction:
|The organization must be a
Public Benefit Organization (PBO) with a valid SARS reference number
which must be reflected on their receipt. Ours is 130001451
|You may not have any conditions
attached to the donation
|There is no minimum, only the
maximum of 10% applies. However you can move benefit to the next
year should you wish to make a greater gift. Your deduction must
be in the year you made the payment.
|There are conditions which need
to be on your receipt & our receipts are all compliant.
So the Government is incentivizing you to donate and we are perfectly
positioned to assist you in gaining this benefit. Should you want
a copy of your receipt for the last year please contact us, or make
your donation before the end of February and secure your tax saving
Many thanks for the support!