Institution, Board, or Body established in terms of South African legislation and partially or fully funded through public resources.
This excludes National, Provincial and Local Government.
Section 10(1)(cA)(i) of the Income Tax Act, 1962 ( the Act) provides an exemption from normal tax of –
- receipts and accruals of any institution, board , or body (other than a company as defined in the Companies Act, any co-operative, closed corporation, trust, water service provider);
- established by or under any law and which, in the furtherance of its sole or principal object-
- conducts scientific, technical or industrial research;
- provides necessary or useful commodities, amenities or services to the State ( includes any provincial administration) , or members of the general public; or
- carries on activities ( including the rendering of financial assistance by way of loans or otherwise) designated to promote commerce, industry or agriculture or any branch
Public institutions which are established in terms of South African legislation and partially or fully funded through public resources.
- Public institutions per the PFMA
- Public FET Colleges as defined in the Further Education and Training Colleges Act
- Universities as defined in the Higher Education Act;
- Public Hospitals or Public Health Care Establishments as defined in the National Health Act
- Public Schools as defined in Chapter 3 of the South African Schools Act
- Public Museums as defined in the Cultural Institutions Act
- Public Pension Funds created as per the Pension Funds Act
Any department of government approved by the Commissioner for purposes of Section 18A may issue a Section 18A receipt for any donation only to the extent that it will be used solely in carrying on any PBAs in Part II.
EI1 – Application for Exemption from Income Tax – External Form
Statutory bodies and VAT
Statutory bodies (government institutions) are not included in the VAT. They are regarded as public authority under the VAT Act. This means that they don’t register and file VAT 201 returns. For the purposes of VAT, a public authority means:
- any department or division of the public service as listed in Schedule 1,2 or 3 of the Public Service Act,1994 ( Act No, 103 of 1994);
- any public entity listed in Part A or C of the Schedule to the Public Finance Management Act, 1999 ( Act No 1 of 1999), or
- any other public entity designated by the Minister for the purposes of this Act to be a public authority
Frequently Asked Questions
FAQ: Do Public Institutions (Institutions, board or body established by or under any law and excludes any company as defined in the companies act ,co-operatives, close corporation, trust or water service provider) need to register for Income Tax?
A public institution will have to register for income tax...Read More
FAQ: Do Public Institutions need to apply for tax exempt status?
Public institutions will have to apply for income tax unless...Read More
FAQ: Which Public Institutions have to register for Income Tax?
Public institutions will have to register for income tax where...Read More
FAQ: Which Public Institutions have to apply for tax exempt status?
Public institutions that do not have a provision in the...Read More
FAQ: Which forms need to be completed by the applying Public Institutions?
An EI1 application form together with supporting documents must be...Read More