Non-Profit? You Still Need to File: SARS Reminder for Exempt Institutions

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Think being tax-exempt means you're off the hook? Think again. SARS has issued a reminder that all Income Tax Exempt Institutions (EIs) including non-profit companies, trusts, and other approved entities must submit their annual IT12EI returns within 12 months after their elected financial year-end. Missing these deadlines can have serious consequences even for exempt entities.

Support from SARS

To assist with compliance, SARS has developed a five-part micro-learning video series explaining how to request, complete, and submit the IT12EI annual return on eFiling:

• Part 1: Overview and How to Log in to eFiling

• Part 2: How to Request a Return on eFiling

• Part 3: How to Complete the General Financial Section on the Return

• Part 4: How to Complete the Additional Information and Trading Activities on the Return

• Part 5: How to Complete the Taxable Income or Loss and Tax-deductible Receipts

Also, read the Compliance Fact Sheet for more information on how to update the registered particulars.

Consequences of Non-Compliance

Failing to submit returns or meet exemption conditions can result in:

• Loss of Tax Compliance Status (TCS), making it harder to attract donations or grants.

• Administrative penalties and interest on outstanding amounts.

• Withdrawal of tax-exempt status, which converts the entity into a standard taxpayer with full tax obligations.

• Loss of Section 18A status, meaning donors can no longer claim tax deductions for their contributions.

Common Triggers for Non-Compliance

• Failure to submit the IT12EI annual return.

• Outstanding tax debt.

• Non-compliance with exemption or reporting requirements.

Section 18A-approved entities must also ensure that all receipts issued meet regulatory requirements. Incomplete receipts may lead SARS to reject a donor’s deduction claim. Additionally, these entities must submit IT3(d) third-party data by 30 October (bi-annual) and 31 May (annual).

Maintaining Compliance

To stay compliant, exempt institutions should regularly update their registered details with SARS. The SARS Compliance Fact Sheet offers practical guidance for updating particulars and managing reporting responsibilities. If you're managing a non-profit, trust, or other exempt organisation, annual tax compliance is not optional. Filing the IT12EI protects your exempt status, your reputation, and your ability to raise funding.