An NPO is an entity registered with the Department of Social Development (DSD): NPO Directorate. NPOs are not automatically exempt based on their registration as an NPO or because of its altruistic and philanthropic objectives and activities.
An NPC is a legal entity type that is registered with Companies and Intellectual Property Commission (CIPC). NPCs are not automatically exempt based on their altruistic and philanthropic objectives and activities.
An entity (NPO and NPC ) must apply for Income Tax Exemption as a Public Benefit Organisation (PBO). SARS will review the application, and only upon the entity receiving an approval letter from SARS will it be deemed a PBO.
