How To Start A PBO In South Africa

Below is How To Start A PBO In South Africa

An NGO may apply to SARS for tax exemption as a Public Benefit Organisation (PBO) if it meets the requirements of the Income Tax Act of 1962.

As is the case with NPO registration, PBO registration is also voluntary (an organization does not need to be an NPO in order to be approved as a PBO).

The main reason why organizations might want to consider registering as a PBO is that PBOs are entitled to the following further tax benefits:

Certain receipts (mainly derived from Donors) are exempt from income tax.

Donors prefer organisations to be registered as PBOs.

To qualify for registration as a PBO, organizations must have as their primary objective, one or more of the following Public Benefit Activities listed in Part 1 of the Ninth Schedule to the Income Tax Act:

welfare and humanitarian

health care

land and housing

education and development

religion, belief, or philosophy

cultural

conservation, environment, and animal welfare

research and consumer rights

sport

providing of funds, assets, or other resources

To register as a PBO, organizations need to submit the following documents to the Tax Exemption Unit of SARS.

A certified copy of the organization’s founding document

A completed application form to register a PBO (Form EI 1)

A written undertaking to be signed by three trustees confirming that they take fiduciary responsibility for the PBO (Form EI 2)

A written undertaking to be signed by three trustees if the organization provides bursaries or awards for study.

Where do I register a PBO in South Africa?

Call the SARS Contact Centre on 0800 00 SARS (7277)

Call the Tax Exemption Unit (TEU) on 012 483 1700 or.

Email your query to teu@sars.gov.za.

Can an NPO register as a PBO?

Both NPO and NPC are allowed to register with SARS (South African Revenue Services) as a PBO to benefit from a special tax exemption. Non-profit companies (NPCs), as well as trusts, can still get PBO status even without needing to register under the NPO Act.