Each year, you will be making a donation of R100 000 to your trust owned company.

Does it have to be declared anywhere?

Yes. All companies must declare all income received or accrued in their annual tax return. Here’s how:

Click on Balance Sheet.

Under Current assets – Trade and other receivables enter the current balance from the TB. It will include the latest donation and previous ones as well.

Under Total Equity,  enter the current balance from the TB.

Click on Income Statement, then on Income Items.

Under Other income type in the donation amount.

Then click on Tax Computation.

Under Other Adjustments : Allowable, type in the donation amount.

That’s it! You do not disclose the donation on your personal tax return and you do not submit a Donations Tax Return.