Home Owners Associations

Home Owners Associations:

Association of persons formed for managing the collective interests common to all its members in respect of expenditure applicable to the common immovable property


Section 10(1)(e)(i)(cc)

The “association of persons” contemplated in the definition of PBO refers to a formal association of persons established by adopting a legal founding document and which may qualify for approval as a PBO. By contrast, an “association of persons” contemplated in PBA 10(iii) is a voluntary informal association or group of persons which carries on one or more PBAs in South Africa. Such an association or group of individuals will not qualify for approval as a PBO because it does not have a founding document.

Note: The “association of persons” referred to in the definition of a PBO and an “association of persons” referred to in PBA 10(iii) are listed separately in PBA 10 as beneficiaries that may benefit from the funds, assets or other resources provided by a conduit PBO. The separate identification of a PBO and an association of persons in PBA 10 means that the respective associations of persons differ, the former being a formally approved PBO and the latter an informal voluntary association of persons.

Helpful Resources:

EI1 – Application for Exemption from Income Tax – External Form

Interpretation Note 64

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