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PBO and Section 18a application

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FAQ

What is a Public Benefit Organisation (PBO) service?

 

The PBO service is the application for tax exemption and section 18A approval.

This is a registration process done through the South African Revenue Services Tax Exemption Unit

 

What is the benefit?


The benefit is that your organization is exempt from paying income tax and you may issue donors section 18A certificates which they can then deduct for income tax

 

If I have a NPO or NPC, what then?


If you have registered a NPO (Non-profit organisation) through the Department of Social Development, then you still have to apply for PBO status. You are not automatically exempt from income tax.


If you have registered a NPC (Non-profit company) through The Companies Intellectual Property Commission (CIPC), then you still have to apply for PBO status. You are not automatically exempt from income tax.

 

Do I need to amend my MOI (Memorandum of Incorporation)

 

The South African Revenue Services tax exemption unit changed their system whereby they will issue you the approval letter and ask you to amend your founding document at a later stage to include section 30 of the Income tax requirements.

For a NPC, your founding document is your MOI.

For a NPO, your founding document is your constitution.

This can be attended to at a later stage. It is advised to first get the application submitted in order to get a speedy outcome.

 

What are the prerequisites for PBO registration?


You have to perform PBO activities in order to apply. These are activities for the benefit of the general public.
You must have 3 unconnected directors if you are a NPC.

Or 3 unconnected board members if you are a NPO.

 

What is an unconnected person?

 

It is a person that is not a family member or spouse.

 

What is the process of application?

 

Upon processing of your payment, the service is activated and we are ready to start.

You will receive a list of information to compile.

All application forms and templates will be completed on your behalf and emailed to you for signature.

Your application will then be submitted.

What is the cost?

R5,000

How long does it take for me to get my PBO approval letter?

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