Section 18A Tax Certificate/Receipt

In South Africa, Section 18A of the Income Tax Act, 1962, provides a significant tax incentive for individuals and businesses that contribute to a registered Public Benefit Organization (PBO), such as MegaVoice Africa.

What is a Section 18A Tax Deductible Receipt?

A section 18A tax deductible receipt is an official document issued by Section 18A-approved institutions to a donor who makes a qualifying donation. It serves as evidence of the donation made and potentially enables the donor to claim a tax deduction from their taxable income on submission of the income tax return.

How can a donor confirm the status of an approved 18A organization?

The South African Revenue Services provides a list of all registered institutions, which you can verify here .

What are qualifying donations?

• Cash

This is the most common type of Section 18A donations, and includes monetary contributions made by individuals or businesses directly to the registered PBO.

• In-Kind

This refers to non-cash contributions, and may include clothing, food, assets to use, etc. In-kind donations must be properly valued and verified to qualify for Section 18A tax deductions.

• Payroll Giving

This allows employees to contribute to PBO’s through regular deductions from their salaries. The employer may deduct a specified amount from the employee’s salary and donate it to the chosen PBO on their behalf. The section 18A-approved institution issues the section 18A tax deductible receipt to the employer, and the employer must take these donations into account when determining the monthly employees’ tax to be deducted from the employees’ remuneration.

Are there any limitations on the value of a qualifying donation?

Donations qualifying for tax deductions under Section 18A are capped at 10% of the donor’s taxable income for the year of assessment.

In order to receive your valid Section 18A certificate, please download our donor form and kindly return it to accounts@megavoice.africa.

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