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​Deduction of donations made by employees to Solidarity fund

​In order to encourage donations to the Solidarity fund by employees through employers, the maximum monthly deduction of 5% has been increased. An additional limit of up to a maximum of 33, 3% for three months or 16, 66% for six months depending on the employee’s circumstances, is available. This amendment is effective from 1 April 2020 until 30 September 2020. 

A maximum donation to be allowed as a deduction by the employer when calculating the monthly PAYE is a percentage of the employee’s remuneration after deducting allowable retirement fund and retirement annuity fund contributions over specific months:

  • 33.33% for 3 months (April, May and June 2020)); or
  • 16.66% for 6 months (April to September 2020)

This article first appeared on sars.gov.za

Webinar Commentary

For an update on the latest legislative amendments and court rulings access our Monthly Tax Update webinar-on-demand presented by Prof Jackie Arendse here.

Further webinar commentary on income tax consequences of donations can be accessed here.

 
 

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