Oberholzer, Ruanda2010-07-192010-07-192004-12Oberholzer, R 2004, 'The tax deductibility of donations, with specific reference to donations of property made in kind to public benefit organisations', Southern African Business Review, vol. 8, no. 3, pp. 68-75. [http://www.unisa.ac.za/sabusinessreview]1561-896Xhttp://hdl.handle.net/2263/14501Section 18A of the Income Tax Act (Act 58 of 1962), as amended by the Revenue Laws Amendment Act (Act 45 of 2003) entitles a taxpayer (an individual or a legal entity, including a trust) to deduct annual donations to certain public benefit organisations, not exceeding 5% of taxable income. The question arises whether the same tax deduction applies when a taxpayer decides to make a donation in cash as opposed to a donation of property in kind. The aim of this paper is to compare the effect on a taxpayer's taxable income of making a cash donation compared with a donation of property in kind. It appears that the tax deduction in respect of donations is greater when a taxpayer decides to donate an amount in cash rather than a donation of property in kind. The paper shows that, under current legislation, a donation of property made in kind can be structured in such a way that it will provide a taxpayer with an identical tax deduction. It is hoped that current legislation pertaining to the deduction of a donation of property in kind will be amended soon, as the provisions are clearly inequitable in relation to a taxpayer who wishes to donate property in kind rather than a cash amount to a public benefit organisation.enCollege of Economic and Management Sciences, University of South AfricaTax deductionsTax planningTaxationSouth African Revenue Service (SARS)PropertyIncome taxIncome Tax Act 58 of 1962Financial managementDonationsCashTax lawManagementBusinessArticle