We have expertise in setting up Public Benefit Organisations (PBOs). These entities can be in the form of a Section 21 Company, an Association of Persons or a Trust. A PBO may, provided it is correctly structured, be exempted from taxation. The Income Tax Act provides for these exemptions. The activities of a PBO are usually of a Humanitarian,  Religious, Welfare or Charitable nature. Also Private Schools may qualify under certain circumstances.

Donations made to a PBO may qualify for a tax deduction provided the PBO has section 18A of the Income Tax Act authority to issue such certificates. However, there are restrictions and provisos that need to be addressed in structuring a PBO.

Section 30 of the Income Tax Act provides that to qualify as a PBO the sole object must be the carrying on of one or more public benefit activities.........
 

"where—
(i) all such activities are carried on in a non-profit manner and with an altruistic or philanthropic intent;
(ii) no such activity is intended to directly or indirectly promote the economic self-interest of any fiduciary or employee of the organisation, otherwise than by way of reasonable remuneration payable to that fiduciary or employee; and
(iii) at least 85 per cent of such activities, measured as either the cost related to the activities or the time expended in respect thereof, are carried out for the benefit of persons in the Republic, unless the Minister, having regard to the circumstances of the case, directs otherwise......"