Tax Exempt Entities

There are a variety of organisation types that may enjoy full or partial tax exemption.

These include -
-Public Benefit Organisations (PBOs);
-Recreational Clubs;
-Homeowner Associations;
-Small Business Funding Entities; and
-Certain associations that promote the common interest of persons carrying on a particular type of business or profession.

However, in some cases, VAT and Corporate tax can still apply to these organisations.

There are a variety of organisation types that may enjoy full or partial tax exemption.  Most popular amongst these organisations are 

Public Benefit Organisations (PBOs)

A not-for-profit organisation of which the sole or principal object is the carrying on of one or more public benefit activities set out in the 9th schedule to the Income Tax Act.

Recreational Clubs

A not-for-profit organisation of which the sole or principal object is to provide social and recreational amenities or facilities to its members.

Homeowner Associations

A not-for-profit organisation of which is formed solely for the purposes of managing the collective interest, in immovable property, common to its members.

Small Business Funding Entities

A not-for-profit organisation of which the sole or principal object is to provide funding for small, medium and micro-sized enterprises.

Other Associations

Certain associations that promote the common interest of persons carrying on a particular type of business, profession, or occupation also enjoy partial tax exemption. These entities also include mutual loan associations, trade unions, and a chamber of commerce or industry.

The requirements to qualify for exemption can often be daunting and the distinction between taxable and exempt income for corporate income tax and VAT can be vague or complicated.  We assist management of these organisations to navigate their way through the complex provisions and requirements to allow them to focus on what is important to them.

Our services include –

  • Assistance with registering as a tax exempt entity with SARS
  • Advice on registration as a VAT vendor
  • Calculation of corporate income tax liability 

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