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Thread: Gift rules.

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    Diamond Member AndyD's Avatar
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    Gift rules.

    Can anyone please tell me what the maximum amount you're allowed to receive tax free from someone overseas each year as a gift. Also is the yearly tax-free gift allowance per person or per family? Finally, does the gift allowance also apply to kids who are minors and have their own bank account but have never been registered as a tax payer?

    Thanks in advance.
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    Diamond Member Mike C's Avatar
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    Hi AndyD,

    Here is an article by Wendy Knowler that appeared on Times live recently that may help.

    http://www.timeslive.co.za/consumerl...after-22-years
    An education isn't how much you have committed to memory, or even how much you know. It's being able to differentiate between what you do know and what you don't. - Anatole France

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    AndyD (20-Oct-16)

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    Diamond Member AndyD's Avatar
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    Thanks Mike. I didn't make things very clear in the OP, I was wondering about cash gifts being transferred into a SA bank account by family overseas. Are the allowance amounts the same for cash as they are for goods and parcels?
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    Site Caretaker Dave A's Avatar
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    If it's cash, perhaps the answer is to call it a donation.
    The trouble with opportunity is it normally comes dressed up as work.

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    Diamond Member AndyD's Avatar
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    Would calling it a donation make a difference? I've got family overseas wanting to send our kids money for birthdays and Christmas, it's a about 4 thousand UK pounds in total, the kids are getting 1500 each and there's a thousand for me and wifey. I'm just trying to avoid it becoming a paperwork nightmare with SARS and FICA etc and obviously I'd rather it was free from tax if possible.
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    Site Caretaker Dave A's Avatar
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    To be honest, I'm not certain. However, I do know that donations tax only kicks in at R100k, and is payable in the hands of the donor.

    That's considerably higher than the gift threshold
    So I suspect might not attract much attention.
    The trouble with opportunity is it normally comes dressed up as work.

    Alcocks Electrical Services | Alcocks Pest Control & Entomological Services

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    AndyD (23-Oct-16)

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