In South Africa, public benefit organizations-PBOs are supported significantly by the South African Revenue Service – SARS, which plays a vital role in the process.
PBOs rely on SARS to provide them with tax exemptions and other benefits that assist them in carrying out their missions to serve their communities better. SARS also works with PBOs to ensure they comply with tax laws and regulations. It provides these organizations with guidance and support to assist them in navigating the complex tax landscape.
This partnership between SARS and PBOs helps to ensure that these organizations can carry out the important work they do and positively impact society as a whole. SARS and PBOs can increase the likelihood that the nation’s most vulnerable populations will receive the assistance they require.
In this article, we will be sharing more information on how to apply for SARS PBO, the registration process for PBO, and other relative topics.
How do I apply for SARS PBO?
PBO status is important for more than one reason. First, it lets non-profits get tax breaks on their donations, making it easier for them to do their work. Second, PBO status also lets organizations get tax-deductible donations from individuals, which makes it easier for them to get the money they need to carry out their missions. Having PBO status can also help an organization look more trustworthy, which makes it easier for them to get volunteers, donors, and business partners.
The following is intended as a general guide and may be updated periodically to reflect changes in South African Revenue Service rules and regulations. Applying for PBO status can be complicated, so it’s best to seek advice from a tax expert or SARS for help.
Verify that your group satisfies the criteria for a Public Benefit Organization before applying. Your group must be a non-profit and engaged in public benefit activities as specified by SARS.
- You must submit your organization’s founding documents, financial statements, and proof of tax-exempt status to SARS in order to apply for PBO status.
- Get the SARS PBO application form here and fill it out. Make sure you’ve filled out everything correctly.
- After filling out the form, it should be delivered to your local SARS office along with the necessary supporting paperwork. Through eFiling, you can also electronically apply and provide supporting documents.
- SARS’s application processing time after submission can range from a few days to several weeks. In due time, you will hear back regarding the status of your application.
- To qualify for tax exemptions from SARS after receiving PBO status, your organization must first register with the agency. In this way, all donations to your organization will be exempt from taxation.
- Be sure to save documentation showing your organization qualifies as a PBO in addition to recording all financial transactions involving donations. This will be useful for showing that you’ve met a PBO’s standards.
Where do I register a PBO?
It is necessary to visit the South African Revenue Service in order to register a Public Benefit Organization. You must provide the SARS with an application form for the PBO that has been completed and is accompanied by all necessary supporting documentation. SARS will issue a certificate of registration to you once your application has been accepted; to function as a PBO, you are required to have this certificate.
How long does it take to register a PBO in South Africa?
In order to complete the registration process, you will need to provide the South African Revenue Service with a fully filled-out PBO application form and all of the necessary supporting documentation. Following that, SARS will conduct an evaluation of the application, which could take several weeks. In order to function as a PBO, SARS will issue a certificate of registration after it has been granted approval for the business.
Because it may take up to two months for the application to be approved, it is in your best interest to begin the process as soon as possible.
Does a PBO pay tax?
PBOs in South Africa are generally exempt from paying income tax; however, they may still be required to register for and submit tax returns to SARS. Even though PBOs in South Africa do not have to pay income tax, they may still be required to do so.
Regardless of whether or not the PBO has been approved to have no tax liability, all PBOs operating businesses or otherwise engaged in commercial activity are required to file annual income tax returns.
How to Register For PAYE Online
Register For PAYE Online. In this article, we will look at the process involved regarding PAYE on SARS efiling and other tax payments using efiling.
Where to Get A Medical Scheme Tax Certificate?
Here’s everything you need to know about medical scheme tax certificates, which are a critical part of proving your medical aid expenditure
How to Get SARS ITA34
How to Get SARS ITA34. Today we walk you through everything to do with your ITA34 and what you need to know.
How to Activate PAYE On eFiling
As you continue to read below, there will be guidelines that will assist you in registering your employees and activating PAYE on eFiling.
How to Get A Tax Compliance Status Pin
The following article gives a comprehensive guide on how to get a Tax Compliance Status Pin
How to Avoid Paying Dividend Tax in South Africa
In this guide, we'll delve into the art of sidestepping dividend taxes, probe into whether dividends enjoy a tax-free ride in South Africa
What is the Difference Between SARS Audit And Verification?
What is the Difference Between SARS Audit And Verification? Let's take a closer look at these terms and the processes involved
Difference Between Tax Rebate and Tax Threshold?
Difference Between Tax Rebate and Tax Threshold? This article explains different concepts you should know about filing tax returns.
How to Access SARS Profile
In this article, we’ll discuss how to access your SARS profile and answer some of the common questions users have when using eFiling.
SARS Supporting Documents For A Tax Refund
Today, we are unpacking everything around SARS supporting documents that you should know
How to Request My B-BBEE Certificate
This article seeks to address some of the discrepancies in information by providing a comprehensive guide to all things related to B-BBEE certificates.
How to Change Portfolio Type on eFiling
Here’s everything you need to know on how to manage your portfolios of eFiling. To change your portfolio type on eFiling, here’s what you to do.
Reasons You Still Need to File Your Tax Return
Reasons You Still Need to File Your Tax Return. Here are some good reasons why you should file your tax return
How to Request A Correction On SARS eFiling
In simple steps, learn how to request a correction on SARS eFiling. Avoid penalties, interest, or legal action by correcting errors on your tax return.