Money Talks e-Newsletter | July 2025 |
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Tax filing season is upon us, with auto assessments from SARS starting on the 7th of July.
Therefore, I have decided to discuss a very underrated tax deduction that people tend to misunderstand, which is charitable donations. |
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Donation Limit: You can deduct up to 10% of your taxable income (excluding retirement fund lump sums and severance benefits) for donations made to Section 18A-approved PBOs (Public Benefit Organisations).
Excess Donations: If your donations exceed the 10% limit, the excess amount will be carried forward to the next tax year and can be claimed then.
Section 18A Certificate: To claim the deduction, you must obtain a Section 18A certificate from the PBO, which includes details such as the PBO’s registration number, the amount donated, and confirmation that the donation qualifies for a tax deduction. |
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| Example Calculation
Let’s say your taxable income for the year is R500,000, and you donate R50,000 to a qualifying PBO.
Maximum Deductible Amount: 10% of R500,000 = R50,000
Taxable Income After Deduction: R500,000 - R50,000 = R450,000
Tax Savings: Assuming a marginal tax rate of 31%, the tax saving would be 31% of R50,000 = R15,500.
Thus, by donating R50,000, you reduce your tax liability by R15,500. This is a great way to reduce your tax liability while also doing good.
Please contact me if you need more information or other ways to reduce your tax liability. |
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Thank you, Thank you, Thank you
In June, I had the honour of receiving a Stonehouse Achievers Award, recognising me as one of the top 10 advisers within the group.
I remain deeply grateful for the trust you place in me to help manage your financial journey.
This is a responsibility I take seriously, and I sincerely thank you for your continued support and confidence. |
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Contact:
Mauritz Oberholzer A Financial Advisor employed by Stonehouse Capital (Pty) Ltd, an authorised Financial Services Provider (FSP 50464) Mobile: +27 82 774 1996
E-mail: mauritz.oberholzer@stonehousecapital.co.za
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