Section 18A Donations Tax Deduction South Africa 2026
Section 18A Donations: Turn Generosity Into a Tax Deduction
Last Updated: September 2026 | Reading Time: 7 minutes
Donations to SARS-approved public benefit organisations can cut your tax bill – but only if the receipt says the magic words ‘section 18A’ and you stay within the limits.
Quick Answer
Under section 18A of the Income Tax Act, you may deduct bona fide donations to SARS-approved public benefit organisations (PBOs) from your taxable income, up to 10% of your taxable income (excluding retirement fund lump sums and severance). Excess donations carry forward to the next year. You need a valid section 18A receipt to claim.
Which Donations Qualify?
The organisation must be approved by SARS as a public benefit organisation with section 18A status – being a registered NPO or NPC alone is not enough. Qualifying bodies include many charities, schools, churches (for approved activities), animal welfare organisations and humanitarian funds. The official rules are on the SARS donations tax page.
Donations that do not qualify: money given to individuals, crowdfunding for a person’s medical bills, school fees, raffle tickets, and anything where you receive something in return.
What a Valid Section 18A Receipt Must Show
- The organisation’s name, PBO reference number and address
- The words “section 18A” and confirmation the receipt is for a bona fide donation
- Your name and (since 2023) your ID or tax reference number
- Date and amount of the donation (cash or value of goods in kind)
- Receipt serial number and the signature of an authorised person
PBOs now submit third-party 18A data to SARS, so your claim is cross-checked against what the charity reported.
The 10% Limit and Carry-Over
Example: Sipho’s taxable income before the donation deduction is R620,000. He donated R80,000 to an approved charity during the 2026 tax year.
- Limit: 10% x R620,000 = R62,000 deductible in 2026
- Tax saving at his 36% marginal rate: R62,000 x 36% = R22,320
- Remaining R18,000 carries forward and is deductible in 2027
Certain donations to specific approved organisations (for example some UN-related agencies) are deductible above the 10% cap – your 18A receipt will indicate this.
How to Claim on Your ITR12
Capture the total from your 18A receipts in the donations container of the ITR12 return. Keep the receipts for five years – this is one of the most commonly verified deductions. Add it to your filing checklist so it is never forgotten.
Important: this is not a free service. TaxSeason2026.online is the website of Admin Boss – Tax division, a private South African tax practice that assists individuals with the preparation and filing of their SARS tax returns for a professional fee. We are not SARS and we are not affiliated with SARS or any government body. SARS eFiling itself is a free government channel – our fee covers expert review, deduction optimisation and done-for-you filing.
Frequently Asked Questions
Can I deduct donations to any charity?
No. Only donations to organisations with SARS section 18A approval qualify, and you must have a valid 18A receipt. A charity being registered as an NPO or NPC is not enough – ask for its PBO number and an 18A receipt before assuming the deduction.
Is there a limit on donation deductions?
Yes – 10% of your taxable income (calculated before the donation deduction and excluding retirement lump sums). Any excess carries forward to the following tax year, where it is again subject to that year’s 10% limit.
Do I pay donations tax when I donate?
Donations tax at 20% applies to individuals only above R100,000 of donations per year (R10,000 for companies). Section 18A donations to approved PBOs are exempt from donations tax and deductible from your income – a double benefit.
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