How does an NPC apply for Public Benefit Organisation tax approval? #
An NPC must apply separately to the South African Revenue Service (SARS) if it wants approval as a Public Benefit Organisation (PBO).
PBO approval is a tax status. It is not created automatically by CIPC incorporation or Department of Social Development NPO registration.
What must be in place first? #
Current SARS guidance requires the entity to:
- be registered for income tax;
- have an eFiling profile;
- have an active income-tax number;
- have up-to-date SARS registered details, including its Registered Representative; and
- submit the current exemption application and supporting documents.
The organisation’s sole or principal purpose must be to carry on one or more qualifying public benefit activities in a non-profit manner and with an altruistic or philanthropic intent. A public benefit activity is an activity listed in the relevant part of the Ninth Schedule to the Income Tax Act.
Is religious work automatically approved? #
Religion is among the recognised areas in the public-benefit framework, but SARS must still consider the organisation, its founding document, activities and compliance with the legal conditions. Approval is not guaranteed.
What does approval mean? #
Section 10(1)(cN) provides preferential income-tax treatment for qualifying receipts and accruals of an approved PBO. Some trading or business income may still be taxable.
Approved PBOs must continue to comply and submit annual income-tax returns. Tax exemption does not mean “no SARS work”.
Get the right help #
PBO applications and founding-document requirements can have lasting consequences. Use Start My Company Support for an initial route, and use a registered South African tax practitioner or attorney where professional advice is required.
Related articles #
Last checked against SARS: 31 August 2026
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