When a Public Benefit Organisation (PBO) Is Taxed — and When It’s Not

Non-profit organisations often believe their receipts are automatically tax-free, until SARS proves otherwise. This article explains when a Public Benefit Organisation (PBO) truly qualifies for tax exemption, when tax applies, and how everyday activities like charging fees or earning trading income can create unexpected tax risk. Using practical SARS examples, it breaks down cost recovery, permissible trading, and the basic exemption in a way that helps accountants keep PBOs compliant and avoid costly surprises.