This is a useful, often-overlooked tool for South Africans doing basic estate and family financial planning — a parent can help an adult child with a deposit or school fees up to R150,000 a year without triggering a tax event. It's a good example of a rule that rewards understanding: the same amount given as a single large gift versus spread deliberately across tax years can make a meaningful difference over time.
Source: SARS
Frequently Asked Questions
Who is liable for donations tax — the giver or the receiver?
The donor is liable for donations tax, not the person receiving the gift.
Does the R150,000 exemption reset every tax year?
Yes — it's an annual exemption per individual donor, not a lifetime allowance.
Are donations between spouses taxed?
No — donations between spouses are generally exempt from donations tax entirely, regardless of the amount.