Section 18a-eligible donations to public benefit organisations are tax deductible — so you can claim back all the income tax paid on amounts you have donated. DoNation provides all the paperwork you need, simply and easily.
Visit the website of one of the public benefit organisations and charities that we work with.
Complete the donation form on their donation page, with your name and contact details. You’ll get a donation reference number.
Make your donation, using any of the payment methods the organisation provides, and providing your donation reference number.
Within a week or two, you’ll receive your 18a certificate by email. We’ll send all of your certificates again after the end of the tax year, in a convenient bundle for your SARS tax return.
Claim your tax deduction on your annual SARS tax return and keep your certificates in case SARS asks for supporting documentation.
A section 18A certificate or receipt is a document or receipt that is issued by a section 18A-approved public benefit organisation (or PBO) to a taxpayer who has made a donation to the PBO.
In other words, if you have made a donation to a charitable organisation, you may be able to get a section 18A certificate.
If you are a taxpayer and have made a donation to a section 18A-approved PBO, the section 18A certificate will allow you to claim a tax deduction subject to a certain limit. This means that the more you donate, the less tax you will pay on your remaining income!
But, the section 18A certificate issued by a section 18A-approved organisation is important – without it, the tax deduction cannot be claimed.
Yes. There is a limit. The current limit is 10% of your taxable income (excluding any retirement fund lump sum benefit, retirement fund lump sum withdrawal benefit, and severance benefit), as calculated before allowing any deduction for donations under section 18A or a deduction for foreign taxes. For example, if your taxable income for a particular year of assessment amounts to ZAR 100,000, the tax deduction would be limited to ZAR 10,000.
But remember, the more that you donate up to the 10% limit, the more you can claim as a tax benefit. And don’t worry – if you donate over 10% of your taxable income in a year under assessment, you can then claim the tax deduction benefit during the next year under assessment. So the tax benefit connected with a donation will not be lost!
