Need a tax-break? Need to donate before the end of this tax year?
Whether you are an individual or a company who needs to donate surplus CSI, consider putting your money to good use – Donate to help Children with Cancer and their Families and get a Section 18A Tax Certificate.
Section 18A of the Income Tax Act (Act 58 of 1962)
Section 18A(1) of the above-mentioned Act provides for a deduction of donations in the form of cash or certain types of assets made, inter alia, to Public Benefit Organisations (PBOs) approved under section 30(1), provided that the donor is in possession of a valid receipt and the deduction does not exceed 10% of the donor’s taxable income.
This means that:
- Donations in general are liable to taxation at 20%.
- If you feel charitable and donate to a public benefit organisation, in terms of the Income Tax Act you can also claim deductions against taxable income. However, the deduction is limited to 10% of such taxable income before claiming the donations deduction
- However, certain donations made to registered and approved organisations are exempt and claimable as tax deductions.
- Little Fighters Cancer Trust (LFCT) is an approved institution for purposes of section 18(A) of the Income Tax Act, and donations to this institution are tax deductible in certain instances as noted above (i.e. registered and approved organisations).
- Therefore, unconditional donations to LFCT in cash or in kind (e.g. material assets), qualify as a tax deductible expense, provided that the donation does not exceed 10% of the donor’s taxable income.
- In this regard LFCT in its capacity as recipient usually issues the necessary section 18(A) tax certificate upon request.
- This document will serve as receipt for the donation and will entitle the donor to claim a deduction on the relevant tax return by submitting the tax certificate together with associated documentation to SARS before the annual tax submission deadline.
The Little Fighters Cancer Trust is a registered Non-Profit Organisation (NPO) with Public Benefit Organisation (PBO) status. This affords private and corporate donors the taxation benefits as set out in Section 18A.
LFCT is certified Level 1 BBEEE – Donors may therefore also claim BBBEE points against the Socio-Economic Development element of the BBBEE scorecard.
- Trust Registration No: IT2817/2010
- NPO No: 089-376
- PBO No: 930037657
- Tax Registration No: 1000/881/17/5
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