Page 26 - GA Maclachlan Tax Guide 2024

PUBLIC BENEFIT ORGANISATIONS (PBO)

In order to qualify as a PBO an entity needs to have as its main object the
carrying out of one or more public benefit activities in a non-profit manner�
These activities need to qualify in one or more of the following categories:
■ welfare and humanitarian
■ health care
■ land and housing
■ education and development
■ conservation, environment and animal welfare
■ religion, belief or philosophy
■ cultural
■ research and consumer rights
■ sport
■ providing funds, assets or other resources
■ support services to other PBO’s
■ hosting certain international events
Note: Only the activities in bold qualify for section 18A status�
For more information on how to register a PBO with SARS and the specific
requirements refer to the SARS website:
https://www�sars�gov�za/ClientSegments/Businesses/TEO/Pages/default�aspx
Donations to approved public benefit organisations are exempt from donations
tax and deductable for income tax as follows if section 18A status has been
approved:
■ Company donations limited to 10% of taxable income
■ Individual donations limited to 10% of taxable income excluding any
retirement fund lump sum benefits
■ Any excess above the 10% cap above may be rolled over to subsequent
years

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