Deed Of Donation Agreement South Africa
Whether you`re thinking of helping your son financially so he can buy his first property or give money for a good cause, there are a few things you should keep in mind. A gift is defined in the Income Tax Act No. 58 of 1962 as “any free transfer of property, including a free surrender or waiver of a right”. The donor should therefore not receive the ornament in return, as it is an exchange agreement. There are two types of donations: donatio inter vivos (donation between two people who are both alive) and donatio mortis causa (a gift in which the finished receives the gift only after the death of the donor). The conditions for an inter vivo donation and a donation of mortis causa are as follows: 1. The donor must make an offer of donations which must be accepted by the person in charge; 2. The donor must have the necessary legal capacity to make the donation and the person(s) must have the necessary legal capacity to accept the donation. 3. Everything a person can act (in commerce) can be given; 4. A donation must be legal and feasible; and 5. A donation must be identified or identifiable.
Donations can also be withdrawn. In the case of an inter-vivo donation, the donor can withdraw this donation at any time before the last one accepts the donation. After the gift has been accepted by the talented person, a valid contract has been concluded and the donor can only withdraw the donation in case of gross ingratitude of the bitten, for example. B when the donor threatens the life of the donor. A donation of mortis causa can be cancelled at any time before the death of the donor, as the donation is not ratified until after the death of the donor. Finally, and probably of the utmost importance to some people, is the issue of the gift tax that must be paid to the recipient of the income. Currently, the tax on donations is calculated at 20% of the value of the donated property depending on the market. In accordance with Article 59 of the Income Tax Act, the donor is obliged to pay tax on donations within three months of the donation.
If the donor does not pay the tax on time, the donor and the executor are jointly and severally liable for the payment. An individual can donate R100,000 per year, free of donation tax….