With third party data supplied to SARS making up the majority of the information currently populating individual taxpayers’ tax returns, it is no surprise that SARS intends to apply the same reporting requirements to Section 18A certificates. The reason for this move is to curb the issuing of such certificates by entities that are not approved to do so. SARS has proposed that the information required in such receipts be extended and third-party reporting be extended in future to cover the receipts issued.
This proposed change will make it easier for individual taxpayers to claim a donation as a tax deduction, as qualifying claims will automatically be prepopulated on their Income Tax returns. Taxpayers are still urged to ensure that the Public Benefit Organizations that they are donating money to qualifies to issue Section 18A certificates. This qualifying criteria can be checked by a simple check on the SARS website www.sars.gov.za. Simply click on the ‘Business and Employers’ tab, go to ‘Tax Exempt Organizations’ and then ‘Approved Section 18A PBOs’. If the name of the entity you are donating to is not on this list, you will not qualify for the applicable tax deduction.