SA Sailing recieves section 18(a) Public Benefit Organsiation status

After years of concerted effort, SA Sailing has received confirmation that it has received the Section 18(a) status.

This is extremely good news for us. With the granting of this status, the value and benefits of affiliation to SA Sailing are once again strengthened for our affiliated clubs, classes, recognised training centres and to sailing in general. Having this certificate provides the means for these bodies to work through SA Sailing for fundraising and sponsorship on key provided-for areas to grow the sport and enrich lives of South Africans.

The South African Revenue Service (SARS) confirmed that this provides for exemption from income tax, and their confirmation states the following:

This Income Tax Exemption has been granted in terms of section 10(1)(cN) of the Act with effect from 01 January 2003. Annual receipts and accruals will therefore be subject to the provisions of section 10(1)(cN) of the Act and accruals and receipts from trading or business activities which fall outside the parameters of section 10(1)(cN) will be subject to tax

The following exemptions also apply and are limited to:

1. The public benefit organisation has been approved for purposes of section 18A(1)(a) of the Act and donations to the organisation will be tax deductible in the hands of the donors in terms of and subject to the limitations prescribed in section 18A of the Act with effect from 02 September 2020.
2. Donations made to or by the PBO are exempt from Donations Tax in terms of section 56(1)(h) of the Income Tax Act.
3. Exemption from the payment of Estate Duty in terms of section 4(h) of the Estate Duty Act No.45 of 1955. “

More details on this will follow in due course.