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 NPO must register for Income Tax then 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.
