National Treasury has resisted calls to increase, from 10 percent to 15 percent, the limit for tax deductions for donations to public benefit organisations (PBOs).
The call was made in response to a proposed amendment to the Income Tax Act, which, if approved, will entitle you to make donations to PBOs that exceed the amount you are allowed to claim as a deduction in one tax year but, by spreading the deduction over a number of tax years, still receive tax relief on the full amount.
The Taxation Laws Amendment Bill proposes that donations to PBOs that exceed 10 percent of your taxable income may be carried forward and deducted from your taxable income in the following tax year.
The current limit of 10 percent of your taxable income that applies to deductions reportedly discourages large donations.
The proposed effective date for the amendment is March 1, 2014.