How do I apply for Income Tax Exemption as a Public benefit organisation (pBO)?
How do I apply?
- On an EI 1 Application form (to be completed by all organisations).
- Contain the details of three unconnected persons i.e. three people who are not related to each other. People are considered to be connected if they are close relatives to one another.
- Be signed by the organisation’s Public Officer / Public Representative or agent.
- El 2 - Written undertaking (only for public benefit organisations to ensure compliance with
section 30 of the Income Tax Act)
the Income Tax Act)
Top tip. The EI 2, EI 2 B, or EI 2 C must be signed by the three unconnected office bearers contained in the EI 1
What supporting documents do I need?
- A Founding Document – which is either of the following:
- Signed and Dated Constitution (if you are an Association of Persons)
- Signed copy of the Trust deed from the Master’s Office and Letter of Authority from the Master of High Court (if you are a Trust)
- Copy of the Memorandum of Incorporation and Articles of Association (if you are a non-profit company registered with Company Intellectual Property Commission (CIPC).
type, branch code and reflecting the date the bank account was opened.
- For the organisation; and
- For the Public Officer (if not already registered with SARS as a taxpayer).
- To see which documents are acceptable as proof of residential address, see our Relevant material/supporting documents page and look at specifically 'How to update my residential or business address section'.
How do I submit my application?
- All of the above should be submitted at your nearest SARS branch.
Since the introduction of SARS’s new electronic registration system on 12 May 2014, applications can no longer be submitted via post or fax.
Under exceptional circumstances e.g. if the applicant is incapacitated or lives more than 200km from their nearest SARS branch. they can ask a representative person to hand in their registration application at a SARS branch. However, that representative person will firstly need to register with SARS as a legal entity (they will need to bring their ID and power of attorney/ appointment letter to show that they are representing their client).
will entail a further approval process. Also, even if exemption from income tax is granted, all PBOs must still complete an annual Income Tax Return on an IT12EI form.
information has been submitted.
Top tip: It is essential that all information provided in the application is correct and complete to avoid unnecessary delays.
- Call the SARS Contact Centre on 0800 00 SARS (7277)