TAX Benefits for NGO's

Activities that Qualify for Exemption

TaxingLeave a Comment on Activities that Qualify for Exemption

The Ninth Schedule of the Income Tax Act lists the various types of public benefit activities (PBA) that an NGO can undertake for it to qualify for tax exemption.

These public benefit activities are categorised as:

  • Welfare and Humanitarian;
  • Health Care ;
  • Land and Housing ;
  • Education and Development ;
  • Religion and Belief of Philosophy ;
  • Cultural ;
  • Conservation, Environment and Animal Welfare ;
  • Research and consumer rights;
  • Sport ;
  • Providing of funds , assets and other resources.

The complete TAX benefit reference guide contains detailed information about what types of services and public benefit activities (PBAs) qualify for gaining tax exemption..

As an example we list the various types of public benefit activities (PBAs) that fall in the Welfare and Humanitarian category

Welfare and Humanitarian

(a) The care or counseling of, or the provision of education programmes relating to, abandoned, abused, neglected, orphaned or homeless children.

(b) The care or counseling of poor and needy persons where more than 90% of those persons to whom the care or counseling are provided are over the age of 60.

(c) The care or counseling of, or the provision of education programmes relating to, physically or mentally abused and traumatized persons.

(d) The provision of disaster relief.

(e) The rescue or care of persons in distress.

(f) The provision of poverty relief.

(g) Rehabilitative care or counseling or education of prisoners, former prisoners and convicted offenders and persons awaiting trial.

(h) The rehabilitation, care or counseling of persons addicted to a dependence- forming substance or the provision of preventative and education programmes regarding addiction to dependence forming substances.

(i) Conflict resolution, the promotion of reconciliation, mutual respect . and tolerance between the various peoples of South Africa or the promotion of human rights and democracy.

(j) The protection of the safety of the general public.

(k) The promotion or protection of family stability.

(I) The provision of legal services for poor and needy persons.

(m) The provision of day care facilities for children under school-going age of poor and needy parents.

(n) The promotion or protection of the rights and interests of, and
the care of, asylum seekers and refugees.

(o) Community development for poor and needy persons and anti- poverty initiatives, including

  • (i) the promotion of community-based projects relating to self help, empowerment, capacity building, skills development or anti-poverty;
  • (ii) the provision of training, support or assistance to community- based projects contemplated in subparagraph (i); or
  • (iii) the provision of training, support or assistance to emerging micro enterprises to improve capacity to start and manage businesses, which may include the granting of loans on such conditions as may be prescribed by the Minister by way of regulation in the Gazette.

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