From 1 March 2024, Public Benefit Organisations will be required to report to SARS on any amount donated to the PBO in respect of which it issued a section 18A receipt, as well as all information required to appear on the section 18A certificate (the requirements of which were updated – see Section 18A tax certificates must disclose more information). SARS issued a public notice to that effect on 30 June 2023.
Section 18A of the Income Tax Act permits a qualifying PBO to issue a receipt to a donor. The receipt allows the donor to claim a tax deduction for donations made to the PBO.
There are two reporting periods in every 12-month cycle:
- 1 March to 31 August – the return must be submitted by 31 October of each year; and
- 1 March to the end of February – the return must be submitted by 31 May of each year
PBOs do not have to submit a return for the period 1 March 2023 – 31 August 2023. The first return is due 31 May 2024.
The form to complete is the IT3(d). See this SARS guide for details on how to do so: How to submit IT3.
Board members and trustees of PBOs are encouraged to acquaint themselves with these reporting obligations as the information that is required to be reported may take time to collate and may require additions to or amendments to current IT systems.