Many organisations confuse the legal and tax meanings of NPC, NPO, PBO and Welfare Organisation, often resulting in non-compliance with SARS and regulatory requirements. This course explains the tax treatment of Public Benefit Organisations (PBOs), Section 18A donation rules and how exemption status affects income tax obligations and reporting.
This session provides a practical breakdown of the differences between NPCs (Companies Act), NPOs (NPO Act) and PBOs (Income Tax Act). It explains who qualifies as a PBO, how to apply for tax exemption, and how exempt income must be reported to SARS. The course also clarifies Section 18A eligibility and certificate requirements, compliance obligations and common mistakes made by non-profit entities.
Key Topics Covered:
• NPC vs NPO vs PBO – legal and tax distinctions
• Qualifying criteria for PBO approval
• Tax exemption rules and partial taxation
• Exempt income vs taxable trading income
• SARS requirements for IT12EI returns
• Documentation for exempt income and compliance
• Section 18A donation certificates – who can issue them
• Practical risks and common errors in NPO compliance
• Auditors
• Accountants
• NPO and NGO managers
• Trustees and directors of NPCs
• PBO finance officers
• Tax practitioners
• Fundraising and donor compliance officers
• Community project coordinators
• Anyone involved in managing a non-profit entity
