Tax Exemption Guide for Public Benefit Organisations in South Africa (Issue 4) 61
Annexure E – Pa rt I of the Ninth Schedule to the Income Tax Act, 1962
PUBLIC BENEFIT ACTIVITIES
W ELFARE AND H UMANITARIAN
1. (a ) The care or counseling of, or the provision of education programmes relating to,
abandoned, abused, neglect ed, orphaned or homeless children.
(b ) The care or counseling of poor and needy persons where more than 90 per cent of
those persons to whom the care or counseling are provided are over the age of 60.
(c ) The care or counseling of, or the provision of education programmes relating to,
physically or mentally abused and traumatized persons.
(d ) The provision of disaster relief.
(e ) The rescue or care of persons in distress.
(f) The provision of poverty relief.
(g ) Rehabilitative care or counseling or education of prisoners, former prisoners and
convicted offenders and persons awaiting trial.
(h ) The rehabilitation, care or counseling of persons addicted to a dependence- forming
substance or the provision of preventative and education programmes regarding
addiction to dependence-forming substances.
(i) Conflict resolution, the promotion of reconciliation, mutual respect and tolerance
between the various peoples of South Africa.
(j) The promotion or advocacy of human rights and democracy.
(k ) The protect ion of the safety of the general public.
(l) The promotion or protection of family stability.
(m ) The provision of legal services for poor and needy persons.
(n ) The provision of facilities for the protection and care of children under school -going
age of poor and needy parents.
(o ) The promotion or protection of the rights and interests of, and the care of, asylum
seekers and refugees.
(p ) Community development for poor and needy persons and anti -poverty initiatives,
(i) the promotion of c ommunity-based projects relating to self -help, empowerment,
capacity building, skills development or anti -poverty;
(ii) the provision of training, support or assistance to community -based projects
contemplated in item (i); or
(iii) the provision of train ing, support or assistance to emerging micro enterprises to
improve capacity to start and manage businesses, which may include the
granting of loans on such conditions as may be prescribed by the Minister by
way of regulation.
(q ) The promotion of access to media and a free press.
HEALTH C ARE
2. (a ) The provision of health care services to poor and needy persons.
(b ) The care or counseling of terminally ill persons or persons with a severe physical or
mental disability, and the counseling of their families in this regard.
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(c ) The prevention of HIV infection, the provision of preventative and education
programmes relating to HIV/AIDS.
(d ) The care, counseling or treatment of persons afflicted with HIV/AIDS, including the
care or counseling of their famili es and dependants in this regard.
(e ) The provision of blood transfusion, organ donor or similar services.
(f) The provision of primary health care education, sex education or family planning.
LAND AND H OUSING
3. (a ) The development, construction, upgrading, conversion or procurement of housing
units for the benefit of persons whose monthly household income is equal to or less
than R15 000 or any greater amount determined by the Minister of Finance by notice
in the Gazette after consultation with the Mini ster of Housing.
(b ) The development, servicing, upgrading or procurement of stands, or the provision of
building materials, for purposes of the activities contemplated in subparagraph (a ).
(c ) The provision of residential care for retired persons, where—
(i) more than 90 per cent of the persons to whom the residential care is provided
are over the age of 60 and nursing services are provided by the organisation
carrying on such activity; and
(ii) residential care for retired persons who are poor and needy is actively provided
by that organisation without full recovery of cost.
(d ) Building and equipping of —
(i) clinics or crèches; or
(ii) community centres, sport facilities or other facilities of a similar nature,
for the benefit of the poor and needy.
(e ) The promotion, facilitation and support of access to land and use of land, housing and
infrastructural development for promoting official land reform programmes.
(f) Granting of loans for purposes of subparagraph ( a ) or (b ), and the provision of security
or guarantees in respect of such loans, subject to such conditions as may be
prescribed by the Minister by way of regulation.
(g ) The protection, enforcement or improvement of the rights of poor and needy tenants,
labour tenants or occupiers, to use or occupy land or housing.
(h ) The provision of training, support or assistance to emerging farmers in order to
improve capacity to start and manage agricultural operations.
EDUCATION AND D EVELOPMENT
4. (a ) The provision of education by a “school” as defined in the South African Schools Act,
1996, (Act No. 84 of 1996).
(b ) The provision of “higher education” by a “higher education institution” as defined in
terms of the Higher Education Act, 1997, (Act No. 101 of 1997).
(c ) “Adult basic education and training”, as defined in the Adult Basic Education and
Training Act, 2000, (Act No. 52 of 2000), including literacy and numeracy education.
(d ) “Further education and training” provided by a “ public college” or “private college” as
defined in the Further Education and Training Colleges Act, 2006 (Act No. 16 of 2006),
which is registered in terms of that Act.
(e ) Training for unemployed persons with the purpose of enabling them to obtain
(f) The training or education of persons with a severe physical or mental disability.
(g ) The provision of bridging courses to enable educationally disadvantaged persons to
enter a higher education institution as envisaged in subparagraph (b ).
(h ) The provision of educare or early childhood development servi ces for pre-school
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(i) Training of persons employed in the national, provincial and local spheres of
government, for purposes of capacity building in those spheres of government.
(j) The provision of school buildings or equipment for public schools and educational
institutions engaged in public benefit activities contemplated in subparagraphs ( a ) to
(k ) Career guidance and counseling services provided to persons attending any school or
higher education institution as envisaged in subparagr aphs ( a ) and ( b).
(l) The provision of hostel accommodation to students of a public benefit organisation
contemplated in section 30 or an institution, board or body contemplated in
section 10(1)(cA)(i), carrying on activities envisaged in subparagraphs ( a ) to ( g).
(m ) Programmes addressing needs in education provision, learning, teaching, training,
curriculum support, governance, whole school development, safety and security at
schools, pre- schools or educational institutions as envisaged in subparagraphs ( a ) to
(n ) Educational enrichment, academic support, supplementary tuition or outreach
programmes for the poor and needy.
(o ) The provision of scholarships, bursaries, awards and loans for study, research and
teaching on such conditions as may be prescribed by the Minister by way of regulation
in the Gazett e.
(p ) The provision or promotion of educational programmes with respect to financial
services and products, carried on under the auspices of a public entity listed under
Schedule 3A of the Publi c Finance Management Act.
RELIGION , BELIEF OR P HILOSOPHY
5. (a ) The promotion or practice of religion which encompasses acts of worship, witness,
teaching and community service based on a belief in a deity.
(b ) The promotion and/or practice of a belief.
(c ) The promotion of, or engaging in, philosophical activities.
6. (a ) The advancement, promotion or preservation of the arts, culture or customs.
(b ) The promotion, establishment, protection, preservation or maintenance of areas,
collections or buildings of historical or cultural interest, national monuments, national
heritage sites, museums, including art galleries, archives and libraries.
(c ) The provision of youth leadership or development programmes.
CONSERVATION , ENVIRONMENT AND A NIMAL WELF ARE
7. (a ) Engaging in the conservation, rehabilitation or protection of the natural environment,
including flora, fauna or the biosphere.
(b ) The care of animals, including the rehabilitation, or prevention of the ill -treatment of
(c ) The promotion of, and education and training programmes relating to, environmental
awareness, greening, clean -up or sustainable development projects.
(d ) The establishment and management of a transfrontier area, involving two or more
(i) is or w ill fall under a unified or coordinated system of management without
compromising national sovereignty; and
(ii) has been established with the explicit purpose of supporting the conservation of
biological diversity, job creation, free movement of animals and tourists across
the international boundaries within the peace park, and the building of peace and
understanding between the nations concerned.
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RESEARCH AND C ONSUMER R IGHTS
8. (a ) Research including agricultural, economic, educational, industrial, medic al, political,
social, scientific and technological research.
(b ) The protection and promotion of consumer rights and the improvement of control and
quality with regard to products or services.
9. The administration, development, co- ordination or promotion of sport or recreation in which the
participants take part on a non-professional basis as a pastime.
PROVIDING OF F UNDS , ASSETS OR O THER R ESOURCES
10. The provision of —
(a ) funds, assets, services or other resources by way of donation;
(b ) assets or other resources by way of sale for a consideration not exceeding the direct
cost to the organisation providing the assets or resources;
(c ) funds by way of loan at no charge; or
(d ) assets by way of lease for an annual consideration not exceeding t he direct cost to the
organisation providing the asset divided by the total useful life of the asset,
to any —
(i) public benefit organisation which has been approved in terms of section 30;
(ii) institution, board or body contemplated in section 10(1)(cA)(i), which conducts one or more
public benefit activities in this part (other than this paragraph);
(iii) association of persons carrying on one or more public benefit activity contemplated in this
part (other than this paragraph), in the Republic; or
(iv) department of state or administration in the national or provincial or local sphere of
government of the Republic, contemplated in section 10(1)(a).
11. (a ) The provision of support services to, or promotion of the common interests of public
benefit organisations contemplated in section 30 or institutions, boards or bodies
contemplated in section 10(1)(cA)(i), which conduct one or more public benefit
activities contemplated in this part.
(b ) The bid to host or hosting of any international eve nt approved by the Minister for
purposes of this paragraph, having regard to—
(i) the foreign participation in that event; and
(ii) the economic impact that event may have on the country as a whole.
(c ) The promotion, monitoring or reporting of developm ent assistance for the poor and
(d ) The provision of funds to an organisation—
(i) which is incorporated, formed or established in any country other than the
(ii) which is exempt from tax on income in that other country;
(iii) the sole or principal object of which is the carrying on of one or more activities
that would qualify as public benefit activities listed in Part I of this Schedule if
carried on in the Republic; and
(iv) that carries on each of its activities —
(aa) in a non- profit manner;
(bb) with altruistic or philanthropic intent;
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(cc) in a manner which does not directly or indirectly promote the economic
self -interest of any fiduciary or employee of the organisation other than by
way of reasonable remuneration; and
(dd) for the benefit of, or is widely accessible to the general public of that
country including any sector thereof (other than small and exclusive