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Public Benefit Organisations:
All Public Benefit Organisations (PBO’s) engaged in public benefit activities (PBAs) and includes institutions such as religious institutions, day care centres, disaster relief organisations, and, health clinics, etc.
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Section 10(1)(cN) read with Section 30
9th Schedule of the ITA (PBAs)
Section 18A (Tax deductible donations)
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Recreational Clubs:
Clubs are formed for the mutual benefit of members who contribute to share the cost of providing a collective benefit, namely, the social or recreational facility, e.g. running clubs, angling clubs, bowling clubs etc.
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Section 10(1)(cO) read with Section 30A
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Membership Associations:
Fidelity or Indemnity Fund,
Trade Union (registered with Department of Labour),
Chamber of Commerce, or Industries (or an Association of such Chambers),
Mutual Loan Association,
Local Publicity Association.
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Section 10(1)(d)(iii) read with Section 30B
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Professional Bodies:
Company, society, or other association of persons established to promote the common interest of persons, carrying on any particular kind of business, profession, or occupation.
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Section 10(1)(d)(iv)(bb) read with Section 30B
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Small Business Funding Entity:
An entity established for the sole purpose of providing funding to small, micro, and medium enterprises (SMMEs).
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Section 10(1)(cQ) read with Section 30C
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Home Owners Associations:
Association of persons formed for managing the collective interests common to all its members in respect of expenditure applicable to the common immovable property
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Section 10(1)(e)(i)(cc)
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Public Institutions:
Institution, Board, or Body established in terms of South African legislation and partially or fully funded through public resources.
This excludes National, Provincial and Local Government.
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Section 10(1)(cA)(i)
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Companies owned by Public Institutions
Any South African company of which all the shares are held by a body exempt in terms of section 10(1)(cA)(i) – i.e. wholly-owned by one or more Government Institutions.
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Section 10(1)(cA)(ii)
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Tax deductible donations (Section 18A):
Qualifying entities, that have been approved as PBOs, may obtain additional approval to issue tax deductible donations to donors.
Section 18A status falls in two broad categories, namely a “doer” and a “conduit”. If the PBO conducts the qualifying activities, it is a “doer” OR provides funds or assets (excl. services and other resources) to other S18A approved entities it is a “conduit”.
In addition to PBOs, the following institutions may also apply for approval to issue S18A receipts, and if approved, these entities will also be required to meet the Commissioner’s reporting requirements.
· Government Departments
· Specialised Agencies
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Section 18A
Section 18A(1)(a)
Section 18A (1)(b)
Part II of the Ninth Schedule
Section 18A(1)(c)
Section 18A(1)(bA)
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A branch of a foreign tax-exempt organisation:
The branch of a foreign tax-exempt organisation may be recognised as such if proof is provided that it is registered as a tax exempt organisation in its home country
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