19 December 2024 – The process for Tax Exempt Institutions to apply for Public Benefit Status has been improved.
Non-profit organisations play a significant role in society as they assist with the social and development needs of the country. Preferential tax treatment is designed to assist these organisations with their financial resources. The preferential tax treatment for Non-profit organisations is not automatic and organisations that meet the requirements set out in the Income Tax Act must apply for this exemption.
Watch our new tutorial video on how to apply – How to apply for the Public Benefit Status.
More information below and on the Tax Exempt Institutions webpage.
SARS has improved the EI1 application form for entities that qualify to apply for income-tax-exempt status. Download the EI1 application form here.
These entities include:
- Public Benefit Organisations (PBOs)
- Recreational Clubs
- Home Owners’ Associations
- Membership Associations
- Professional Bodies
- Public Institutions
- Government of the Republic (National, Provincial, or Local)
- Section 18A Status
Form enhancements:
- Easier completion: the online form can be saved, submitted as a PDF, or printed.
- Clearer guidance to help different taxpayers fill in the form correctly.
- Space for signatures and declaration by those accepting Fiduciary Responsibility. This improvement means that submitting an EI2 form is unnecessary if the Founding Document is legally valid.
The EI1 application form is legally up to date and covers recommendations by the Financial Action Task Force to reduce risk. Applicants must complete a new section titled “General”, which has containers for Non-Profit Organisation registration and Persons Acting in Fiduciary Responsibility. This new section is part of SARS’s risk-based methodology and does not constitute approval criteria.
Guide on how to complete the EI1 Application form:
SARS has developed a guide with annexures that speak to each of the different Exempt Institutions categories, and how to complete the application form. This lets taxpayers fill in the form easily. The guide and annexures give information on the supporting documents that must be submitted with the application (depending on the Exemption Category being applied for). Download the guide with the annexures here.
SARS encourages applicants to start using the new EI1 application form as soon as possible. SARS will accept applications based on the old forms until 28 February 2025.
