Approved NPOs in South Africa: Don’t Forget Your SARS IT3(d) Submission Obligations

Many approved Non-Profit Organisations (NPOs) in South Africa are aware of their responsibility to issue Section 18A donation certificates to qualifying donors. However, fewer organisations realise that issuing these certificates also creates an obligation to submit the corresponding IT3(d) information to the South African Revenue Service (SARS).

If your organisation has been approved to issue Section 18A receipts, SARS requires that every qualifying donation certificate issued is reported electronically through the prescribed IT3(d) submission process. This enables SARS to verify donation claims made by taxpayers and helps ensure compliance with the Income Tax Act.

The method of submission depends on the number of donation records being submitted:

·        50 or fewer donation records may be submitted conveniently through SARS eFiling using the online IT3(d) capture facility.

·        More than 50 donation records must be submitted electronically via the SARS HTTPS Bulk Data Submission channel or through Connect: Direct, in accordance with the latest SARS Business Requirements Specification (BRS).

Submitting via HTTPS or Connect: Direct requires the data file to be compiled in the exact SARS-prescribed format, including the correct record layouts, validations, file naming conventions and security requirements. Incorrectly formatted files are likely to be rejected, resulting in delays and additional administrative work.

It is also important to remember that the IT3(d) submission should accurately reflect every Section 18A certificate issued during the relevant reporting period. Organisations should maintain proper donor records and reconcile their issued certificates with the information submitted to SARS before filing.

Failure to comply with SARS reporting requirements may lead to administrative complications for both the NPO and its donors. Donors rely on the successful submission of IT3(d) information when claiming their allowable tax deductions, making accurate reporting an important part of good governance.

As SARS continues to enhance its third-party data verification processes, approved NPOs should ensure they have suitable procedures in place to prepare and submit compliant IT3(d) files each reporting period.

Need assistance?

AAA Tax Practitioners assists approved Section 18A organisations with:

·        IT3(d) data preparation and validation

·        SARS eFiling submissions

·        HTTPS Bulk Data submissions

·        Connect: Direct submissions

·        Section 18A compliance guidance

·        Donor data reconciliation

·        SARS registration and reporting assistance

Whether your organisation has a handful of donors or thousands of donation records to report, AAA Tax Practitioners can help ensure your IT3(d) submissions are accurate, compliant and submitted on time. Contact us today for professional assistance with your SARS Section 18A reporting requirements.