PBO registration requirements are set by SARS, which approves public benefit organisations (PBOs) under section 30 of the Income Tax Act. To qualify, your organisation must be a South African non-profit company, trust or association of persons (or a branch of a foreign tax-exempt organisation), have public benefit activities as its sole or principal object, and have at least three unconnected people accepting fiduciary responsibility.
Approval is not automatic for non-profits. You apply to SARS on form EI 1, and it is separate from registering the entity itself. You can apply online through eFiling, so “PBO registration online” is the standard route. The details are in the SARS Tax Exemption Guide for Public Benefit Organisations (Issue 7, 18 March 2025).
Business Requirements at a Glance
The SARS application checklist sets these upfront requirements.
- The organisation must be a non-profit company (NPC) incorporated or established in South Africa, a trust (inter-vivos or testamentary), an association of persons, or a branch of a foreign tax-exempt organisation or external foreign company
- Its sole or principal objective must be one or more public benefit activities, carried on in a non-profit manner with an altruistic or philanthropic intent
- At least three unconnected persons must accept fiduciary responsibility (this does not apply to a trust created under the will of a deceased person)
- All funds must be used solely for the object for which the organisation was established
- The founding document must include the requirements of section 30
Registration and Legal Requirements
PBO approval is granted by the Commissioner for SARS under section 30 of the Income Tax Act 58 of 1962. Your activities must be public benefit activities listed in Part I of the Ninth Schedule to the Act. The guide also explains that PBOs are partially taxed under section 10(1)(cN), so approval is not a blanket exemption.
You may ask for approval to apply to earlier years of assessment (retrospective approval). That option does not extend to section 18A approval.
Documents and Ownership Information Required
The founding document is where applications run into trouble. It must set out your primary and any additional activities and include the section 30 requirements. If it does not meet the PBO legislative requirements, SARS may reject the application. If you will provide scholarships, bursaries, awards or loans, it also needs the bursary clauses referred to in Public Notice R.333 (Government Gazette 27455).
Generic supporting documents on the SARS checklist are:
- The founding document
- Certified, legible copies of the ID document or passport (with country of issue) of every unconnected person accepting fiduciary responsibility
- An explanation of your objectives and activities
- Annual financial statements, if you are applying retrospectively or have operated for 12 months or more
- Bank confirmation in the entity’s name
An NPC also supplies documents not older than three months, including CoR 14.1, CoR 14.3 and its memorandum of incorporation (MOI), plus a board resolution and letter appointing a Registered Representative, that person’s ID copy and proof of addresses. Depending on your activity, SARS may ask for more, such as NPO Directorate registration under the NPO Act, an EMIS number for schools, or SAQA, QCTO or SETA approval for structured education and training. Check the SARS PBO application checklist for your entity type.
Tax, Licence and Compliance Requirements
An NPC registered with CIPC is automatically registered for income tax. It must appoint a Registered Representative and register that person with SARS within 21 business days.
A PBO must submit an income tax return every year, even where no tax is payable. The prescribed return is the IT12EI, available on eFiling, at a SARS service centre or through the National Service Centre.
Section 18A approval, which lets donors receive tax-deductible receipts, is separate from PBO approval. An existing PBO can apply for it later, or you can apply for both on the same form at the same time.
Process, Deadlines and Ongoing Obligations
Before you apply you need an income tax reference number, an appointed Registered Representative, an eFiling profile, your supporting documents and a verified bank account in the organisation’s name. You then apply for income tax exemption on SARS’s application page through eFiling, or book a visit to a SARS branch through eBooking.
- Register the entity (for an NPC, with CIPC) and appoint your Registered Representative.
- Log in to eFiling and go to My Menu, My Tax Products, Tax Exempt Institutions, then Add New EI.
- Complete form EI 1, including the particulars of the three unconnected persons accepting fiduciary responsibility.
- Upload your supporting documents and submit.
SARS does not set out a processing time or fee in the guides above, so ask SARS if you need either.
Frequently Asked Questions
Is PBO approval automatic for non-profits?
No. Registering an NPC does not make it a PBO. You must apply to SARS, which looks at your activities, your founding document and whether the organisation operates on a non-profit basis.
Can I do PBO registration online?
Yes. With an income tax number, a Registered Representative, an eFiling profile and a verified bank account, you apply for income tax exemption through eFiling under Tax Exempt Institutions. A SARS branch visit booked through eBooking is the alternative.
What is section 18A?
A separate approval that lets donors claim a tax deduction for donations. It can be applied for together with the PBO application, and the activities must fall within Part II of the Ninth Schedule.
What most often delays approval?
A founding document that lacks the section 30 provisions can lead to rejection, so draft it against the SARS checklist from the start.
Does approval exempt all taxes?
No. PBOs are partially taxed and must still file an income tax return every year, even where no tax is payable. Confirm any other tax obligations with SARS.
Confirm the current requirements and forms with SARS before you apply. See business and compliance requirements and the company registration requirements for setting up the entity first.