The South African Revenue Service (SARS) has introduced a new requirement for certain entities to submit IT3(d) returns, aiming to boost compliance and transparency within the tax-exempt sector.
This specifically applies to Section 18A approved Non-Profit Organisations (NPOs) and Non-Profit Companies (NPCs) that issue tax-deductible donation certificates. By submitting these returns, these organisations will report donations eligible for tax deductions under Section 18A of the Income Tax Act, promoting greater accountability and clarity and ensures that the organisation
remains compliant with SARS.
By collecting detailed information on donations, SARS ensures that NPOs and NPCs comply with regulations governing tax-deductible donations. This measure prevents fraudulent claims, abuse, and tax evasion, guaranteeing that only genuine donations qualify for tax deductions.
The IT3(d) returns include detailed information about the donor and the donation and that the donations are properly accounted for with SARS for the specific reporting period (1 March of the
previous year to end of February of the current year).
These returns contain information such as:
- Type of Donor (natural person, company, trust, etc.)
- Donor’s identification details (ID number, passport, tax reference number)
- Registration number if the Donor is a company or trust
- Donor’s trading name (if different from their registered name)
- The value of the donation
- Unique receipt number issued to the donor acknowledging the donation
- Donor’s contact details (email address and contact number)
- The date of the donation
- Any other relevant details as required by SARS
Note: Approved Section 18A entities can submit up to 50 receipts per reporting entity.
Implications for donors if the Section 18A approved entity does not submit the data:
Failure to submit the required data will result in non-compliance with legal requirements, potentially
leading to:
- Penalties imposed by SARS
- Damage to reputation or loss of donor support, as donors will be subjected to audits or other verification processes when filing their tax returns
- Risk of an overall non-compliant tax clearance status
Important Dates: The 2025 Season for Section 18A third-party data submissions will be open from
01 April 2025 and will close on 31 May 2025.
Should you require any assistance or more information, please feel free to contact us at info@tlok.co.za or call 011 794 5582