SECTION 18A

SECTION 18A – FREQUENTLY ASKED QUESTIONS

OUTA (Organisation Undoing Tax Abuse) is now Section 18A registered which means all donations made to OUTA are fully deductible through your annual income tax submission.


What does Section 18A status mean?
Section 18A enables you, the taxpayer, who has made a donation to OUTA to claim a tax deduction up to a certain limit.

Broadly speaking, OUTA donors are entitled to deduct the total value of their donations to OUTA, up to a limit of 10% of your taxable income for that tax year.
In order to claim a tax deduction, you must hold a section 18A certificate issued by OUTA.

Is OUTA Section 18A Approved?
OUTA is an approved institution for purposes of section 18(A) of the Income Tax Act, and donations to OUTA are tax deductible in certain instances.


Where do I get my Section 18A certificate?
OUTA will issue Section 18A certificates at the end of the tax year, these certificates will include any donations made to OUTA from June 2021.  To ensure that your certificate includes all the details required by SARS, please use the Update My Details section on the website to check and update your details.  

Are there any terms and conditions I should be aware of? 
 • The donation must be bona fide, meaning that nothing can be expected to be given in return for the donation
 • The original certificate must be kept in a safe place and made available to SARS if requested.
 • The Section 18A certificate must have the correct details of the taxpayer
 • A taxpayer may not claim both BEE points and a Section 18A tax deduction


How does the Section 18A tax benefit work?
Taxpayers deduct their donations from their taxable income, lowering the total tax due. The reduction depends on your marginal tax rate. 
e.g. If your marginal tax rate is 35%, a donation of R1 000 will result in a reduction of R350 in tax payable.