New Rules for Section 18A Donation Receipts from 1 March 2026

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If your clients issue Section 18A donation receipts, it’s time to prepare for a major compliance update. SARS published Notice 6762, prescribing additional mandatory information to be included in Section 18A receipts. The new rules replace those form 2023 and take effect from 1 March 2026 for all receipts issued on or after that date. Here’s what’s new and what accountants must get right.

What is Section 18A?

Section 18A of the Income Tax Act allows taxpayers to claim deductions for bona fide donations made to approved organisations conducting specific Public Benefit Activities (PBAs) in South Africa (as listed in Part II of the Ninth Schedule).

To qualify:

• The organisation must be formally approved under section 18A.

• The donation must be used exclusively for carrying out approved PBAs in SA.

For a comprehensive breakdown, see the SARS-issued Basic Guide to Section 18A Approval (Issue 5).

What’s New on the 18A Receipt?

Previously, receipts had to include donor and donation details. But the updated rules now expand the required information significantly, especially for third-party reporting and verification.

• New Donor Details Required

  • Section 18A receipts must now also include:

  • Type of person: natural person, company, trust, etc.

  • ID type and country of issue (for individuals)

  • Company or trust registration number (for juristic persons)

  • Trading name, if different from registered name

  • Income tax reference number

  • Contact number

  • Email address.

• Donations in Kind? You Must Include:

  • A clear and accurate description of the donated property

  • The deemed deduction value, as per section 18A(3) or 18A(3A).

• Unique Receipt Number:

  • Each receipt must now carry a unique serial number.

The Next Steps

These updates replace the previous 2023 rules and are aimed at tightening verification, reducing abuse, and enhancing SARS’ ability to match donation claims. The enhanced reporting means greater accountability and more pressure on both donees and donors to get it right. If your clients:

• Issue Section 18A receipts, you must ensure compliance with the new format.

• Receive Section 18A receipts, make sure the documentation meets the new requirements to claim deductions.

Non-compliance can result in donations being disallowed as tax-deductible, or worse, penalties for issuing invalid receipts.

1. Review the new receipt requirements with your PBO clients.

2. Update receipt templates and accounting systems.

3. Train staff and donors on the updated requirements.

4. Start preparing now, all receipts from 1 March 2026 must comply.