The Taxation Laws Amendment Act No. 30 of 2000 has introduced new provisions regulating the tax-exempt status of non-profit organisations as well as the tax deductibility of donations to non-profit organisations.
The new legislation requires that organisations claiming exemption from income tax must comply with the provisions of section 30. In terms of section 30, such an organisation must engage in an approved public benefit activity.
The Minister announced in his Budget Review that certain additional organisations will now be permitted to issue tax deductible receipts in terms of section 18A of the Income Tax Act. These organisations must also comply with the provisions of section 30.
The Minister, by way of a notice in the Government Gazette, must publish these public benefit activities. The criteria which must be applied, are that the approved activity must be of a philanthropic or benevolent nature having regard to the needs, interest and well being of the general public. Drafts of the preliminary lists both in respect of section 30 and section 18A are available on the SARS web site.
Although it is the intention that this list should be as comprehensive as possible, the list can be expanded in future.
The lists may be obtained from www.sars.gov.za. Comments must be submitted on or before the 15th February 2001.
Draft Public Benefit Activity List Income Tax Exemption (Adobe Acrobat Document) Draft Public Benefit Activity List Deductibility of donations (Adobe Acrobat Document)
Comments can be submitted to pbo@sars.gov.za
ISSUED BY THE COMMISSIONER FOR THE SOUTH AFRICAN REVENUE SERVICE
PRETORIA