Tax Exemption Applications Have Gone Digital
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SARS is modernising how organisations apply for income tax exemption. A new online registration system for Income Tax Exempt Institutions will soon replace manual paperwork, streamlining the process and making compliance simpler and faster.
This shift is part of SARS’s broader digital transformation strategy, with the full system launching on 27 February 2026. Until then, there’s a structured transition phase that organisations need to prepare for.
Transition Phase: 8 December – 26 February 2026
This pilot period will be used by SARS to:
Test the new eFiling functionality
Migrate existing tax-exempt institution records
Run internal trade testing.
Here’s what it means for applicants:
Manual applications discontinued from 12 December 2025
SARS will no longer accept the EI1 form or any manual submissions after this date.
No new exemption applications accepted between 12 Dec and 26 Feb
The new digital system is not open to the public yet during the pilot period. If you don’t submit by 12 December, you’ll have to wait until 27 February 2026.
Existing applications will still be processed
Any application submitted before 12 December will be finalised using existing processes and turnaround times.
What to Do Now to Prepare
If your organisation plans to apply for income tax exemption, here’s how to get ready:
Register for Income Tax (if not already done)
Register for eFiling
Appoint a Registered Representative authorised to act on the entity’s behalf
Collect all supporting documents, including updated banking details.
These steps can be completed at a SARS branch if needed, but make sure to book your visit using the SARS eBooking system.
What Happens After 27 February 2026?
Once the new online system goes live, you’ll be able to:
Submit exemption applications entirely online through eFiling
Apply for additional exemptions, such as Section 18A
Update your organisation’s registered details (e.g. fiduciary officers, contact details, bank info)
Request to withdraw your exemption if your organisation no longer qualifies.
New System Features You Should Know About
The new smart application form, (RAV TEI) provides for a dynamic, rules-driven application preventing incomplete or incorrect submissions.
Clear communication with all correspondence and status updates will appear on eFiling. Rejection reasons will be linked to specific legislative requirements.
Document requests facilitated by a system-generated letter will tell you exactly which documents to upload, no more guessing.
Deadline driven compliance where you’ll have 21 business days to submit your supporting documents after applying.
An approval letter is issued in a downloadable format to confirm your exemption status and relevant section of the Act.
Important Notes for Different Entity Types
Non-Profit Companies (NPCs): Auto-registered for Income Tax via CIPC but must still appoint a Registered Representative and register for eFiling.
Trusts: Must complete the Trust and tax registration process before applying for exemption.
Other legal entities (e.g. associations, clubs, societies): Must complete the RAV01 form and attend a SARS branch for authentication and verification.
Even More to Look Forward To
In a meeting with the Recognised Controlling Bodies (RCBs), SARS confirmed that this is just Phase 1 of the TEI Modernisation Project. Future enhancements may include:
Renewal or confirmation functions
Integration with donor systems
Automated reminders and more.
SARS’s ultimate goal is to improve turnaround times, transparency, and make compliance easier.
In Summary
If you missed the 12 December 2025 deadline for manual applications, you’ll have to wait until 27 February 2026 to apply using the new system. No new applications will be accepted during this gap, so prepare now to avoid delays.
Visit the Tax Exempt Institutions webpage for full guidance and updates.
