FAQ: How do I apply for Income Tax Exemption?

The Tax Exemption Institution (TEI) will consider an application for exemption that complies with the following: A formal application for exemption must be lodged with the TEI in the following format: El 1 – Application form (to be completed by all organisations) This application form must: Contain the details of three unconnected persons – i.e. three people who are not related to each other. Natural persons are considered to be connected if they are close relatives to one another) Be signed by the Public Representative or accountant accepting fiduciary responsibility. A written undertaking accompanying the EI 1. Depending on the nature of your organisation it will be one of the following: El 2 – Written undertaking (only for public benefit organisations to ensure compliance with section 30 of the Income Tax Act) EI 2 B– Written undertaking (only for foreign branches to ensure compliance with section 30 of the Income Tax Act) EI 2 C – Written undertaking (only for recreational clubs to ensure compliance with section 30a of the Income Tax Act) Please note: The EI 2, or EI 2 B, or EI 2 C must be signed by the three unconnected office bearers contained in the EI 1 application form. Attach the following documents to the application: A Founding Document – which is either of the following: Signed Constitution (if you are an Association of Persons) Signed copy of the Trust deed (if you are a Trust) Copy of the Memorandum of Incorporation (if you are a non-profit company). Original bank statement Financial Statement (if the organisation has been operating for longer than a year) or if it is a new organisation, a bank statement or original bank letter not older than 3 months. The following options are available to you in submitting the application: SARS branch office or TEI Office. It is essential that all information provided is correct and complete to avoid unnecessary delays. Where TEI has requested outstanding documents in support of an application from a taxpayer and these are not received within 12 months of this request, the application will be closed as finalised and taxpayer will be required to re-apply should they still wish to continue with such an application for exemption.

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