Section 18A Certificate
Information about tax-deductible donations and our Section 18A Public Benefit Organisation status.
Section 18A Approval Pending
Khubazi Foundation has submitted its application for Public Benefit Organisation (PBO) status and Section 18A approval to SARS. Once approved, we will be able to issue tax deduction certificates to qualifying donors. This page will be updated immediately upon approval. For enquiries, contact us at info@khubazi.co.za.
What is Section 18A?
Section 18A of the Income Tax Act (No. 58 of 1962) allows South African taxpayers to claim a tax deduction for donations made to approved Public Benefit Organisations (PBOs) that conduct qualifying public benefit activities.
When a donor makes a qualifying donation to a Section 18A-approved organisation, the organisation issues a formal receipt (the Section 18A certificate) which the donor can use to reduce their taxable income when submitting their annual tax return to SARS.
This mechanism encourages charitable giving by making donations more financially accessible to individuals and businesses, while ensuring that funds are directed to legitimate, SARS-approved public benefit activities.
Benefits for Donors
Key advantages of donating to a Section 18A-approved organisation.
Tax Deductible Donations
Donors may deduct qualifying donations from their taxable income, reducing their overall tax liability.
SARS Approved
Section 18A status is granted by the South African Revenue Service (SARS) to approved Public Benefit Organisations.
Qualifying Activities
Donations must be used for approved public benefit activities including education, welfare, and community development.
Annual Limit
Donors may deduct up to 10% of their taxable income for qualifying donations to Section 18A approved organisations.
Frequently Asked Questions
What is a Section 18A certificate?
A Section 18A certificate is an official receipt issued by a SARS-approved Public Benefit Organisation (PBO) to donors. It allows donors to claim a tax deduction for their donation against their taxable income, up to 10% of their taxable income per year.
Who is eligible to receive a Section 18A certificate?
Any individual, company, or trust that makes a qualifying donation to an approved PBO conducting approved public benefit activities is eligible to receive a Section 18A certificate.
What information is included on the certificate?
The certificate includes the donor's name and details, the donation amount, the date of donation, the PBO's name and PBO number, and confirmation that the donation will be used for approved public benefit activities.
How do I request a Section 18A certificate?
Once Khubazi Foundation receives its PBO approval from SARS, certificates will be issued automatically for qualifying donations above a minimum threshold. You may also request a certificate by contacting us at info@khubazi.co.za.
When will Khubazi Foundation's Section 18A approval be finalised?
Khubazi Foundation has applied for PBO status and Section 18A approval with SARS. We anticipate approval in the near future. This page will be updated as soon as our approval is confirmed and certificates can be issued.
Make a Difference Today
Your donation supports youth empowerment, education, and community development across KwaZulu-Natal. Once our Section 18A approval is confirmed, qualifying donations will be fully tax-deductible.
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