Employment Tax Incentive Act, 2013 (Act No. 26 of 2013)NoticesCOVID-19 Disaster Relief Organisation deemed to be Public Benefit OrganisationDeduction in respect of donation to COVID-19 disaster relief organisation and increase in annual donations limit for donations to Solidarity Fund |
| (1) | There must be allowed to be deducted, in accordance with section 18A of the Income Tax Act, subject to subsection (2), from the taxable income of any taxpayer, so much of the sum of any bona fide donations made by that taxpayer in cash or of property made in kind, which was actually paid or transferred during the year of assessment by that taxpayer to a COVID-19 disaster relief organisation. |
| (2) | If the total amount of deductions under section 18A(1)(a), (b), (bA) and (c) of the Income Tax Act and subsection (1) exceeds the amount allowed to be deducted under section 18A(1)(B) of the Act, the portion of the excess attributable to payment or transfer to the Solidarity Fund must, notwithstanding section 18A(1)(B) of that Act, be allowed to be deducted up to a maximum of 10 per cent of the taxable income (excluding any retirement fund lump sum benefit, retirement fund lump sum withdrawal benefit and severance benefit) of the taxpayer as calculated before allowing any deduction under this section or section 6quat(1C) or 18A of the Income Tax Act. |
| (3) | An amount deducted under subsection (2) must not be carried forward under the proviso to section 18A(1)(B) of the Income Tax Act. |
| (4) | Subsections (1), (2) and (3) are deemed to have come into operation on 1 April 2020 and apply in respect of— |
| (a) | a company, in respect of any amount paid or property transferred on or after 1 April 2020 but on or before 30 September 2020 in respect of any year of assessment during which that amount was paid; |
| (b) | a trust, in respect of any amount paid or property transferred on or after 1 April 2020 but on or before 30 September 2020 in respect of any year of assessment ending on or after 1 April 2020 but on or before 28 February 2021; and |
| (c) | a person other than a company or a trust, in respect of any amount paid or property transferred on or after 1 April 2020 but on or before 30 September 2020 in respect of any year of assessment ending on or after 1 April 2020 but on or before 28 February 2021. |
[Section 8 of the Disaster Management Tax Relief Act, 2020 (Act No. 13 of 2020), GG43883, 5 November 2020]