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 lawManagementBusinessThe tax deductibility of donations, with specific reference to donations of property made in kind to public benefit organisationsArticle