Public Benefit Organisations (PBO)

02/19/2025

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/businesses-and-employers/tax-exempt-institutions/

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

Disclaimer: The information contained in this article is a summary of current legislation and budget proposals proposed by the Minister of Finance on the 19th February 2025. We suggest that you do not act solely on material contained in the booklet as the nature of the information contained herein is general and may in certain circumstances be subject to misinterpretation. In addition, the budget proposals may not include all legislative adjustments which could be made in the near future. Consequently we recommend that our advice be sought when encountering these potentially problematic areas. While every care has been taken in the compilation of the booklet, no responsibility of any nature whatsoever shall be accepted for any inaccuracies, errors or omissions.