Maximise Your Tax Benefits Before the End of the Tax Year!

As the South African tax year draws to a close, now is the perfect time to take advantage of tax incentives for donations to Public Benefit Organisations (PBOs) and Broad-Based Black Economic Empowerment (B-BBEE) compliant NGOs.

Individuals and companies: Reduce Your Taxable Income with a Section 18A Certificate

If you donate to a registered Public Benefit Organisation (PBO), you can claim a tax deduction of up to 10% of your taxable income in exchange for a Section 18A Certificate. This means you pay less tax while supporting a worthy cause.

Companies: Improve Your B-BBEE Scorecard

Businesses can enhance their B-BBEE compliance by donating to an NGO with the required B-BBEE credentials. Companies that donate up to 1% of their net profit after tax to such an organisation can earn up to 5 points on their B-BBEE scorecard under the Socio-Economic Development (SED) element.

Important Note:
Each donation can either receive a B-BBEE donation certificate or a Section 18A certificate, but not both of these for the same donation.

Benefits of Donating:

• Reduce taxable income and pay less tax
• Support meaningful social impact initiatives
• Improve B-BBEE compliance for better business opportunities
• Receive a valid donation certificate for tax and compliance purposes

The NPO portfolio committee has access to more than 200 vetted NPOs nationally and can assist you in deciding where to direct your donation

For more information on how to donate and obtain your tax-deductible or B-BBEE donation certificate, contact Dee from the NPO Portfolio at NPO@capechamber.co.za 

Act now before the tax year ends!