Taxation

Public Benefit Organisations (PBO’s) are established to conduct activities which benefit the general public. Due to the nature of their work, the Income Tax Act allows PBO’s to carry on certain activities on a tax-free basis.

Organisations wanting to benefit from the tax exemptions granted by the Income Tax Act need to obtain approval from the Receiver of Revenue (SARS).

The employee contributes 1% towards UIF and the employer contributes another 1% on behalf of the employee, resulting in a total UIF contribution of 2% being payable. This 2% is however not payable on the total gross salaries, but calculated based on a capped amount.

Based on the notice published in the Government Gazette no. 35715, dated 26 September 2012, the UIF earning limit increased from R149,736 to R178,464 p/annum and from R12,478 to R14,872 p/month.