Important Information on Donations
All schools including the Delta Primary School is registered to Receive Donation Income in terms of Section 18A of the Income Tax Act. As part of the registration,
- We are granted Public Benefit Organisation Status (PBO),
- It allows for Donors to have such donations treated as tax-deductible items
- The Registration Number is 9370000372
Charitable donations tax deduction limit
It is important to note that tax-deductible donations are limited to 10% of your taxable income (excluding any retirement fund lump sum benefits). For example, if your taxable income for the 2021 year of assessment amounts to R500,000, the tax deduction would be limited to R50,000.
Any amount donated in excess of 10% of your taxable income will be carried over to the next year of assessment and thus will not be lost. On completing their annual income tax return, a donor claiming a section 18A tax deduction will be required to input the following information contained on each section 18A certificate:
- the amount donated to each donee; and
- the relevant approved PBO reference number of each donee.
In addition to this, a further benefit of making donations to approved PBO’s is that these donations are exempt from donations tax as well as capital gains tax (in relation to assets donated), ensuring that the beneficiaries of the donation enjoy the full benefit of the donations and that the donors are not subject to any adverse tax implications subsequent to making the donations.