Guide to Complete the EI1 Application Form

Summary

This webpage in its design, development, implementation, and review phases is guided and underpinned by the SARS values, code of conduct and the applicable legislation. Should any aspect of this webpage conflict with the applicable legislation, the legislation will take precedence.

The purpose of this webpage is to provide guidelines regarding the completion of the EI1 Application Form.

Application for Exemption from Income Tax Form (El1)

The form for Application for Exemption from Income Tax (EI1) can be obtained via the following channels:

• On the SARS website: www.sars.gov.za
• Call the SARS Contact Centre on 0800 00 SARS (7277) or
• By visiting any SARS branch

The entity registering and applying when using the SARS website must:

• Click on the form
• Complete the relevant information that is required
• Save/Print the form; and
• Submit the completed form with the required supporting documentation via the SARS Online Query System (SOQS).

Completion of the Application for Exemption from Income Tax (EI1) form

• The container headings will be displayed according to the selection made on the wizard questions.
• When completing the EI1 form the mandatory fields have a red boarder around them. If the field is completed correctly the red boarded will disappear and if not, the red boarder will remain.

Nature of Organisation

• Indicate the applicable organisation type by marking the relevant tick box with “X” under Nature of Organisation.
• Complete the establishment date of the entity on the “Date Established” field as stated in the founding document.

Details of the Organisation 

• Complete the following “Organisation Details” applying for exemption.
  
  • Registered Name (as stated in the founding document).
  • Tel No.
  • Select the applicable “Financial Year End (Month)” from the drop-down menu.
  • Income Tax Reference No. (if applicable).
  • Website Address (if applicable).

Please note: The applying entity is not required to complete the “Income Tax Ref No.” field if it is not registered for Income Tax. If the entity is registered for Income Tax, then complete the “Income Tax Ref No.” field.

• Compete the “Physical Address Details” of the applying entity
  
  • Unit No. (if applicable)
  • Complex (if applicable)
  • Street No. (if applicable)
  • Street /Farm Name
  • Suburb/District
  • City/Town
  • Postal Code
  • Country Code

• Complete the “Postal Address Details” of the applying entity
  
  • Mark here with an “X” if same as the physical address or complete the postal address.
  • If the Postal Address is a “Care of Address” indicate by marking the tick box with an “X”.

• • Mark “Y” or “N” to indicate if the Postal Address is a Street Address.
  • If the Postal Address is not a Street Address the following fields will be displayed as open and editable:
    
    • Postal Agency or Other Sub-unit (if applicable) (e.g. Postnet Suite ID)
    • PO Box: Indicate on the applicable tick box if the postal address is ‘P.O. Box’ or ‘Private Bag (if applicable)
    • Private Bag: Indicate on the applicable tick box if the postal address is ‘P.O. Box’ or ‘Private Bag (if applicable)
    • Other PO Special Service (specify) (if applicable)
    • Number
    • Post Office
    • Postal Code
    • Country Code 

• • If the Postal Address is a Street Address the following fields will be displayed as open and editable:
    
    • Unit No. (if applicable).
    • Complex (if applicable).
    • Street No. (if applicable).
    • Street /Farm Name
    • Suburb/District
    • City/Town
    • Postal Code
    • Country Code

General

• Select “Y” or “N” to indicate if the applying entity is familiar with the Financial Action Task Force (FATF) recommendations on Money Laundering Terror Financing i.e. FATF Recommendations eight (8) and Immediate Outcome (ten) 10 on NPO and Money Laundering/Terror Financing.  
• For detailed information on FATF, please visit the FATF Recommendations on NPO Sector | South African Revenue Service (sars.gov.za) webpage.

Non-Profit Organisation Registration (NPO)

• This section is applicable to Non-Profit Organisations only.
• Confirm if the entity is registered with the Department of Social Development (DSD) NPO Directorate by selecting “Y” or “N”.
• Where “Y” has been selected, complete the DSD NPO number.
• Indicate the organisations activities or intended activities by marking “Y” or “N” to the following:
  
  • Make donations to individuals or organisations outside of South Africa
  • Provide humanitarian service outside of South Africa
  • Provide charitable service outside of South Africa
  • Provide religious services outside of South Africa
  • Provide educational services outside of South Africa
  • Provide cultural services outside of South Africa

Persons Acting in a Fiduciary Capacity

• Complete the number of office bearers that will be responsible for the applying entity. Fiduciary Responsible Person refers to the Office Bearers, Directors, and Trustees. This excludes the Registered Representative or Public Officer of the applying entity (if other than the Fiduciary Responsible Person).
• A minimum of one Fiduciary Responsible Person is required (dependent on Income Tax Exempt category being applied for).
• Indicate by selecting “Y” or “N” if any fiduciary responsible person, representative taxpayer, public officer of the applying entity disqualified on the grounds of being insolvent, delinquent, or has been accused of misconduct involving dishonesty, theft, fraud, forgery, perjury, or any other offence.
  
  • Section 6 of the Trust Property Control Act,
  • Section 25A of the NPO Act, or
  • Section 69 of the Companies Act

Bank Account Details

• If the entity has been operational for 12 months or more, or if the entity does have a bank account in the name of the entity complete the bank account details:
  
  • Bank Account Status
  • Account No.
  • Branch
  • Account Type
  • Bank Name
  • Branch Name
  • Account Holder Name (account name as registered at bank).

Applicable Sections of the Act

Refer below for detailed information on the application of the relevant sections of the Act:

• Branch of Exempt Foreign Organisation
  
  • GEN-AE-01-A01 – EI Application for Branch of Exempt Foreign Organisation – External Annexure
• Membership Association
  
  • GEN-AE-01-A02 – EI Application for Membership Association – External Annexure
• Public Benefit Organisations (PBO)
  
  • GEN-AE-01-A03 – EI Application for Public Benefit Organisations – External Annexure
• Public Benefit Organisations (PBO) with Section 18A
  
  • GEN-AE-01–A04 – EI Application for Public Benefit Organisations with Section18A – External Annexure
• Professional Body
  
  • GEN-AE-01-A05 – EI Application for Professional Body – External Annexure
• Schools
  
  • GEN-AE-01-A06 – EI Application for Schools – External Annexure
• Government Departments
  
  • GEN-AE-01-A07 – EI Application for Government Departments – External Annexure
• Home-Owner’s Association
  
  • GEN-AE-01-A08 – EI Application for Home Owner’s Association – External Annexure
• Professional Body
  
  • GEN-AE-01-A09 – EI Application for Section 18A – External Annexure
• Recreational Club
  
  • GEN-AE-01-A10 – EI Application for Recreational Club – External Annexure
• Public Institutions
  
  • GEN-AE-01-A11 – EI Application for Public Institutions – External Annexure

• Small Business Funding Entities
  
  • GEN-AE-01-A12 – EI Application for Small Business Funding Entities – External Annexure

• United Nations Entities
  
  • GEN-AE-01-A13 – EI Application for United Nations Entities – External Annexure

Persons Accepting Fiduciary Responsibility for the Organisation 

Complete the details of the applicable number of unconnected persons who are accepting fiduciary responsibility for the organisation (dependent on Income Tax Exempt category being applied for).

The following details are required to be completed by the applying entity:         

• Surname
• First Two Names
• Initials
• Contact Telephone Numbers (Provide at least one of the following contact telephone numbers).
  
  • Home Telephone Number
  • Business Telephone Number
  • Cellphone Number
• Date of Birth (CCYYMMDD)
• Income Tax Reference Number (if registered for Income Tax)
• Provide one of the following:
  
  • ID Number or
  • Passport Number and Passport Country (e.g. South Africa = ZAF)
• Position Held within Organisation
• E-mail address

• Compete the “Physical Address Details”
  
  • Unit No. (if applicable).
  • Complex (if applicable).
  • Street No. (if applicable).
  • Street /Farm Name
  • Suburb/District
  • City/Town
  • Postal Code
  • Country Code

• Complete the “Postal Address Details”
  
  • Mark here with an “X” if same as the physical address or complete the postal address.
  • If the Postal Address is a “Care of Address” indicate by marking the tick box with an “X”.

• Mark “Y” or “N” to indicate if the Postal Address is a Street Address.
  
  • If the Postal Address is not Street Address the following fields will be displayed as open and editable:
    
    • Postal Agency or Other Sub-unit (e.g. Postnet Suite ID)
    • PO Box: Indicate on the applicable tick box if the postal address is ‘P.O. Box’ or ‘Private Bag’ (if applicable).
    • Private Bag: Indicate on the applicable tick box if the postal address is ‘P.O. Box’ or ‘Private Bag’ (if applicable).
    • Other PO Special Service (specify);
    • Number;
    • Post Office;
    • Postal Code;
    • Country Code;

• • If the Postal Address is a Street Address the following fields will be displayed as open and editable:
    
    • Unit No.
    • Complex
    • Street No.
    • Street /Farm Name
    • Suburb/District
    • City/Town
    • Postal Code
    • Country Code

Public Benefit Activities (PBA)

The selection of PBA listed in Part I and Part II of the Ninth Schedule of the Income Tax Act is not applicable to the exemption application for:

• Membership Association
• Professional Body
• Home-Owner’s Association
• Recreation Clubs
• Small Business Funding Entities (SBFE)

The selection of PBA listed in Part I of the Ninth Schedule of the Income Tax Act is not applicable to:

• Government Public Schools
• Government Departments
• Public Institutions

The selection of PBA listed in Part II of the Ninth Schedule of the Income Tax Act is not applicable to:

• Public Benefit Organisations (PBOs) not applying for section 18A approval status.
• Public Institutions not applying for section 18A approval status.

Part of I of the Ninth Schedule of the Income Tax Act (Section 30)

• Select the applicable public benefit activities (PBAs) as described in the Founding Document.
  
  • Welfare and Humanitarian
  • Health Care
  • Land and Housing
  • Education and Development
  • Religion, Belief or Philosophy
  • Cultural
  • Conservation, Environment and Animal Welfare
  • Research and Consumer Rights
  • Sport
  • Provision of Funds, Assets or Other Resources
  • General – “Other” – Specified under here

Part of II of the Ninth Schedule of the Income Tax Act (Section 18A)

• Select the applicable public benefit activities (PBAs) for section 18A approval as described in the Founding Document.
  
  • Welfare and Humanitarian
  • Health Care
  • Education and Development
  • Conservation, Environment and Animal Welfare
  • Land and Housing 

Activities and Operations 

• Provide a detailed narrative description of the PBAs that the entity intends on conducting or is conducting. List the selected activities in order of importance.

Group Registration

• For the EI application submission of a “Group Registration” for section 30 or section 18A, with entities that share a common purpose, public benefit activities and consolidated annual financial statements complete the following:
  
  • Mark “Y” or “N” to indicate if the application is for group registration under “is this application in respect of a group registration?”.
  • Where “Y” has been marked to indicate that the EI application is for group registration, mark “Y” or “N” to the following questions.
    
    • Are the individual organisations with the group supervised by a regulating or co-ordinating body that takes responsibility for group of organisations?
    • Do all the individuals organisations within the group share a common purpose?
    • Do all the individual organisations within the group conduct the same approved public benefit activities listed in the Ninth Schedule?
    • Are consolidated annual financial statements prepared for the group of organisations?

Particulars of the Registered Representative 

• Complete the details of the Registered Representative responsible for the entity applying for exemption.
  
  • Mark the applicable “Capacity”.
    
    • Treasurer
    • Director
    • Trustee
    • Public Officer
    • Member
    • Accounting Officer
    • Curator / Liquidator / Executor / Administrator (Estate)
    • Accounting Authority (Chief Executive Officer or Head of a Department)
    • Chief Financial Officer

• • Surname
  • First Name
  • Other Name
  • Initials
  • Date of Birth (CCYYMMDD)
  • Date of Appointment (CCYYMMDD)
  • Provide one of the following details
    
    • ID Number
    • Passport Number, Passport Country (e.g. South Africa = ZAF) and Passport Issue Date (CCYYMMDD)

• • Contact Telephone Numbers (Provide at least one of the contact telephone numbers):
    
    • Business Telephone Number
    • Cellphone Number
  • Income Tax Reference Number
  • E-mail address

Tax Practitioner Details 

• Complete the details if the applying entity is represented by a Tax Practitioner.
  
  • Registration Status
  • Registration No.
  • Appointment Date (CCYYMMDD)
  • Controlling Body
  • Business Telephone Number
  • Cellphone Number
  • Email address 

Signatures of Unconnected Persons Accepting Fiduciary Responsibility for the Organisation 

• Signatures of unconnected persons accepting fiduciary responsibility are required.
  
  • Declaration Date (CCYYMMDD)
  • Surname
  • Initials
  • Capacity
  • Signature 

Declaration 

• Complete the following declaration details:
  
  • Declaration
  • Signature
  • Date (CCYYMMDD) 

Definitions, acronyms and abbreviations

The definitions, acronyms and abbreviations can be accessed here – Glossary webpage.

Legal disclaimer: In the event of conflict or inconsistency between this webpage and the PDF version of the guide, the latter shall prevail.