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Whether section 56(2)(b) donation exemption applies to donations to PBOs

07 March 2014   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

The answer to this query is based on legislation as at 2014/03/07.

Q: Does the R100 000 exemption on donations for individuals (Sec56(2)(b)) include any donations made to a Sec18A Institution.  

A: Donations to PBO’s are exempt from donations tax in terms of s 56(1)(h): "by or to any person (including any sphere of government) referred to in section 10 (1) (a), (cA), (cE), (cN), (cO), (d) or (e).S 18A receipts may be issued to Public Benefit Organisations (ss 10(1)(cN) and  10(1)(cA) institutions).


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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