Improved Process for Tax-Exempt Institutions to Apply for Public Benefit Status

14 Jan

The South African Revenue Service (SARS) introduced enhanced processes for Non-profit organisations (NPOs) to apply for Public Benefit Status, which comes with preferential tax treatment. Eligible organisations must apply and meet the requirements set out in the Income Tax Act. SARS will accept applications on old forms until 28 February 2025, but organisations are encouraged to switch to the new EI1 form immediately.

Who is eligible for Public Benefit Status

Entities eligible to apply include:

• Public Benefit Organisations (PBOs)

• Recreational Clubs

• Homeowners’ Associations

• Membership Associations

• Professional Bodies

• Public Institutions

• Government Entities (National, Provincial, or Local)

What Has Changed in the Process

1.	Enhancements to the EI1 Application Form

Easier to complete with options to save, submit as a PDF, or print.
Includes clearer guidance for various applicant categories.
It features a dedicated section for fiduciary signatures and declarations, eliminating the need for an EI2 form if the Founding Document is valid.
There is a new "General" section for Non-Profit Organisation registration and fiduciary information that aligns with risk-based methodologies.

2.	Comprehensive Guidance

A detailed guide with annexures tailored to each exempt institution category.
Clear instructions on completing the form and submitting the required supporting documents.

Additional Resources

Watch SARS’s instructional video: “How to Apply for Public Benefit Status”.

The comprehensive guidance on How How To Complete the EI1 Application Form includes step-by-step instructions on how to complete the form and what other documentation needs to be submitted.

Read more about public benefit organisations on the SARS website here.

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