What type of entities qualify for income tax exemption?

An organisation must be constituted in one of the following ways to be approved as a tax exempt institution: Public Benefit Organisation
  • An NPC incorporated in South Africa.
  • A trust established in South Africa.
  • An association of persons formed or established in South Africa. This association of persons must be formally established by adopting a legal founding document
  • A branch of a foreign tax-exempt organisation.
Recreational Club
  • An NPC incorporated in South Africa
  • A society or other association of persons formed or established in South Africa. This society or other association of persons must be formally established by adopting a legal founding document
Membership Associations and Professional Bodies
  • An NPC incorporated in South Africa
  • A society or other association of persons formed or established in South Africa. This society or other association of persons must be formally established by adopting a legal founding document
Small Business Funding Entity
  • An NPC incorporated in South Africa.
  • A trust established in South Africa.
  • An association of persons formed or established in South Africa. This association of persons must be formally established by adopting a legal founding document
Home Owners Association
  • An NPC incorporated in South Africa
  • An association of persons formed or established in South Africa. This association of persons must be formally established by adopting a legal founding document.
Government Institution
  • Any institution, board or body established by or under any law (usually gazetted entities or entities required to register under any law). This specifically excludes the following entities:
    • Any company or NPC
    • Any trust
    • Water services providers
    • Automatic exemptions or entities exempt in terms of other sections
Companies Owned by Government Institutions
  • A company incorporated in South Africa (100% shareholding by one or more government institutions) or an association.

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