At the end of 2022, we reported on likely updates to s18A receipt requirements. Well, they have now been finalised in the Government Gazette!

If your organisation has approved section 18A status from SARS, this newsletter is to alert you to the fact that the following information must be included on a receipt issued in terms of section 18A(2)(a) of the Act. New data is highlighted.

The additional requirements will be applicable to all section 18A receipts with effect from 1 March 2023 and the required information must be available for SARS reference. In due course, but under a different notice, SARS will prescribe the manner in which the information on the section 18A receipts must be submitted to SARS.

A receipt issued in terms of section 18A(2)(a) of the Act will need to include:

• Details relating to the organisation issuing the section 18A receipt, namely, the –

• PBO number
• Name and address
• Unique receipt number allocated to the section 18A receipt issued.
• Details relating to the donor, namely, the –

• The name and address of the donor;
• Trading name of the donor (if different from the registered name); (NEW)
• Donor nature of the donor (natural person, company, trust, etc.); (NEW)
• Donor identification type and country of issue (if donor is a natural person); (NEW)
• Identification or registration number of the donor; (NEW)
• Income tax reference number of the donor (if available); (NEW)
• Contact number of the donor (NEW); and
• Email address of the donor. (NEW)
• The following detail relating to the donation received from the donor:

• Date the donation is received.
• Nature of the donation.
• Amount of the donation if in cash or value of the donation if not in cash.
• A certification to the effect that the receipt is issued for purposes of section 18A of the Act and that the donation has been or will be used exclusively for the objects of the organisation in carrying on the relevant Public Benefit Activities listed in Part II of the Ninth Schedule to the Act.

As you can see, there is a bit more information required in respect of the donor. To emphasise what we said in our last newsletter, SARS contends that the additional information required is in line “with evolving best practice of third-party data requirements”. They say that the additional information will enable them both to:

• develop a more efficient process for allowing deductions (for qualifying donors who are South African taxpayers); and
• help prevent section 18A claims abuse.

If you need any advice on tax for exempt organisations, please contact us.