Do Good and Save on your tax
How about doing good and saving on your taxes?
If you donate to a company that is on the SARS list of Public Benefit Organisations, you might be able to claim back on your donation.
The donation you make needs to be to a Public Benefit Organisation (PBO), which can be a not for profit company (in terms of the New Companies Act) or any other association that has registered with SARS.
There is a comprehensive list of companies available on the SARS website.
The company must be registered with SARS and involved in work that is for the public benefit as laid down in the Income Tax Act, this includes work in education, healthcare, humanitarian work, housing, and conservation.
If you make a bone fide donation to a registered PBO that donation can qualify for the deduction.
It is important to note that you need to be issued with a Section 18A Certificate by the PBO as one of their donors.
The donation needs to be made freely and given with generosity. You may not impose any conditions on the donation and you can not benefit from the donation to the PBO, be it directly or indirectly.
The deduction is limited to 10% of your taxable income. With companies, the donation may be rolled over as a deductable donation in the subsequent year’s tax.
So, go on make that donation and save money too!
Contact us if you would like to find out more admin@118Accounting.co.za