Save tax with Section 18A

Section 18A Tax Certificates are a SARS initiative to encourage philanthropy and cultivate a culture of giving for the greater good. The incentive underscores government’s recognition of the value of Public Benefit Organisations (PBOs) like Tafta, and their role in the betterment of society.

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

How do I get a Section 18A Certificate?

In order to benefit from this incentive, you have 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 aligns with 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, and the date and amount of the donation. If you make regular donations to the same organisation, you may receive a single Certificate listing all the donations and the total amount contributed during the tax year.

Which organisations qualify for Section 18A status?

Only organisations endowed with PBO status by SARS have the authority to issue Section 18A tax certificates. Not all charitable organisations qualify. You need to make sure that your chosen charity holds Section 18A status, and is able to provide you with the official certificate to prove that a qualifying donation has been made.

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 unable to live safely and comfortably on a government old age grant.

One day, God willing, you will also reach old age, and may appreciate the services offered by Tafta – including subsidised accommodation, home based care, meal delivery service, loan of assistive devices, and active ageing programmes designed to encourage elders to continue to live full, independent and involved lives.

These 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?

Your rebate is calculated according to the amount of the qualifying donation. At present, you can claim a deduction of up to 10% of your taxable income. However, the total deduction in any tax year cannot exceed R100 000.

These conditions ensure that the rebate is a meaningful incentive, without disproportionately impacting government revenue. If you would like to apply for a rebate for the current tax year, you need to make your contribution before the end of February.