Section 18A - Tax Reduction

[PaulNOTsaul]

So I am thinking about starting a Public benifit organisation in which friends and family will be able to "donate" to, that way reducing the amount of tax payable. If I remember well the max percentage payable is 11% and the organisation is not

So we are planning to provide building which the PBO will lease from my company as well as sell/provide the PBO with goods it might need.

Questions are:

1. Which would be the best type of PBO that can be used? Old-age home/ orphanage?
2. Can a company also make a donation to a sec.18a company and get a certificate?
3. How easy is it to get the PBO registered with SARS, is it a long process?

 

[SafariTin]

So I am thinking about starting a Public benifit organisation in which friends and family will be able to "donate" to, that way reducing the amount of tax payable. If I remember well the max percentage payable is 11% and the organisation is not

So we are planning to provide building which the PBO will lease from my company as well as sell/provide the PBO with goods it might need.

Questions are:

1. Which would be the best type of PBO that can be used? Old-age home/ orphanage?
2. Can a company also make a donation to a sec.18a company and get a certificate?
3. How easy is it to get the PBO registered with SARS, is it a long process?

Why is donate in inverted commas?

Elaborate on the 11% and finish the sentence.

No offence, but it does not seems as though you are sincere in your intentions and that you are simply trying to avoid tax.

Will you be earning a salary from the PBO?

 

[PaulNOTsaul]

As I hear and understand that up to 11% of one's salary can be donated to a PBO and the 11% can be claimed from SARS.

I will be earning a salary from the PBO, only if it will save a few extra rands

 

[Marsie27]

This might clarify some points:

FAQ: What is a public benefit organisation (PBO)?