Save tax with Section 18A

Section 18A Tax Certificates are a SARS initiative designed to encourage philanthropy and cultivate a culture of giving for the greater good. This incentive underscores government’s recognition of the important role that Public Benefit Organisations (PBOs) like Tafta play in strengthening and supporting society.

PBOs operate with the primary goal of carrying out specific public benefit activities – such as alleviating poverty, advancing education, and promoting health and welfare.

How do I get a Section 18A Certificate?

To benefit from this incentive, you need to be a South African taxpayer. Individuals and companies that make a qualifying donation to a registered PBO receive a Section 18A Tax Certificate as proof that their contribution meets the requirements of the Income Tax Act.

The certificate includes important details such as the PBO’s name and registration number, the donor’s name and address, ID number and tax number, as well as the date and amount of the donation. If you make regular donations to the same organisation, you may receive a single certificate reflecting the total amount contributed during the tax year.

Which organisations qualify for Section 18A status?

Only organisations formally granted PBO status with Section 18A approval by SARS are authorised to issue Section 18A tax certificates. Not all charitable organisations qualify.

Before making a donation, it is important to confirm that your chosen charity holds valid Section 18A status and can provide you with the official certificate required to claim your tax deduction.

Why should I choose Tafta (The Association for the Aged)?

Apart from holding Section 18A status, Tafta serves some of the most vulnerable members of our society – frail elderly people and those who are unable to live safely and comfortably on a government old age grant.

One day, God willing, you too will reach old age and may appreciate the services Tafta provides – including subsidised accommodation, home-based care, meal delivery services, loan of assistive devices, and active ageing programmes designed to help older persons continue living full, independent and engaged lives.

These essential services are funded through public donations from individuals, corporates, trusts and foundations. Making a donation to Tafta is an investment in your own future, or that of your loved ones.

How much can you claim under Section 18A?

Section 18A provides a tax deduction, meaning your qualifying donation is deducted from your taxable income before your tax is calculated.

Currently, individuals and companies may deduct up to 10% of their taxable income in any tax year. If your total qualifying donations exceed the 10% limit, the excess amount may be carried forward to the following tax year.

If you would like to claim a deduction for the current tax year, you need to make your contribution before the end of February.