Draft Tax Exemption Guide for Institutions, Boards or Bodies
Section 10(1)(cA)(i) of the Income Tax Act provides an absolute exemption from income tax of the receipts and accruals of any institution, board or body established by or under any law engaged in specified prescribed activities. The draft guide issued by SARS discusses the requirements for the exemption to apply.
The draft guide issued by SARS provides general guidance on the exemption from income tax of qualifying institutions, boards or bodies under section 10(1)(cA)(i) of the Income Tax Act. These institutions, boards or bodies enjoy preferential tax treatment after they have been granted approval by the Commissioner and continue to comply with the relevant requirements and conditions as set out in the Income Tax Act. Any institution, board or body approved by the Commissioner under section 10(1)(cA)(i) carrying on Public Benefit Activities in South Africa may also qualify for approval under section 18A. The draft guide deals with the following taxes that may affect institutions, boards or bodies:
- Capital gains tax
- Dividends tax
- Donations tax
- Employees’ tax
- Estate duty
- Income tax
- Securities transfer tax
- Skills development levy
- Transfer duty
- Unemployment insurance contributions
The due date for public comment on the draft guide is 8 October 2021.
Find a copy of the draft guide here.
13/08/2021
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