Need to register a Public Benefit Organisation (PBO)? Companies that wish to be exempt from tax will need to register with SARS as PBO. A registered NCO or NPC does not automatically qualify as a PBO and is therefore not exempt from tax. To qualify for Tax Exemption, the entity needs to apply for registration with SARS. The Tax Exemption Unit will decide whether or not you qualify for Tax Exemption, based on certain criteria being met.
Public Benefit Organisation registration will enable you to issue section 18A certificates for donations received. This will in turn encourage more donations from individuals who would like to lower their tax burden, while also doing good.
The following types of activities qualify as Tax Exempt activities, if all other provisions are met:
- Welfare and Humanitarian;
- Education and Development;
- Conservation, Environmental and Animal Welfare;
- Land and Housing
There are more activities, if what you do is not on the list above or you are not sure, get in contact and we will be happy to advise.
Note that a PBO still need to file taxes annually.
Timeframe: 6 weeks
Get in contact for more information, and see how we can help you do good!