The South African Revenue Service (SARS) has released an updated guidance concerning the provision of funds, assets, or other resources by a public benefit organisation (PBO) to any association of persons.
This Note offers guidance on several key aspects: it addresses the situation where a conduit public benefit organisation (PBO) provides funds, assets, or other resources to an association of persons engaged in public benefit activities under PBA 10(iii) in Part I within South Africa. It also clarifies the requirement imposed under section 30(3)(f) on conduit PBOs when providing funds to an association of persons. Additionally, the note explains the meaning of the term “association of persons”.
This Note provides comprehensive guidance on key issues, including the circumstances under which a conduit public benefit organisation (PBO) may offer funds, assets, or other resources to an association of persons involved in public benefit activities under PBA 10(iii) in Part I within South Africa. It further clarifies the obligations imposed by section 30(3)(f) on conduit PBOs when they distribute funds to such associations. Additionally, the Note elucidates the definition and implications of the term “association of persons.”
