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.
