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Tax Exemption of Political Parties
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2013/10/14 at 12:00:47 PM GMT
Posts: 3
Tax Exemption of Political Parties



Could anyone please clarify whether the tax exemption granted to registered Political Parties is a exemption on only certain sources of income or whether all sources of income received by the Political Party is tax exempt.



Ancha Ebersohn

2013/10/16 at 07:49:45 PM GMT
Posts: 52
Receipts & accruals of political parties

Section 10(1)(cE) of the Income Tax provides that the receipts and accruals of any political party registered in terms of the provisions of the Electoral Commission Act ,1996 is exempt from Normal Tax.

This in my view exempts all the receipts and accruals of a political party appropriately registered under the Electoral Act.

Should the Legislature have intended otherwise ,it would have had to make an appropriate provision in the Income Tax Act.  

For instance receipts and accruals of PBO’s are exempt from normal tax under 10(1)(cN) subject to certain restrictions/requirements . Without these restrictions/requirements all receipts & accruals of PBO’s would, I submit also be exempt from Normal Tax.

Appropriately registered political parties are on the other hand not subject to any restrictions its receipts & accruals.

2013/10/17 at 07:15:10 AM GMT
Posts: 3

Thank you for your input.  Much appreciated !



Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.


The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

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