SARS Interpretation Note 10 Issue 5: Skills development levy exemption: Public benefit organisations (source: https://www.sars.gov.za/legal-intr-in-10-skills-development-levy-exemption-public-benefit-organisations/)
INTERPRETATION NOTE 10 (Issue 5)
DATE: 27 August 2025
ACT : SKILLS DEVELOPMENT LEVIES ACT 9 OF 1999
SECTION : SECTION 4(c)
SUBJECT : SKILLS DEVELOPMENT LEVY EXEMPTION: PUBLIC BENEFIT
ORGANISATIONS
Contents
Preamble.............................................................................................................................. 1
1. Purpose .................................................................................................................... 2
2. Background ............................................................................................................. 2
3. The law ..................................................................................................................... 3
4. Application of the law ............................................................................................. 4
4.1 Public benefit organisation carrying on qualifying public benefit activities .................. 4
4.2 Public benefit organisation providing funds ................................................................ 4
5. General meaning of certain terminology in the context of section 4(c) of the
Skills Development Levies Act ............................................................................... 4
5.1 Public benefit organisation......................................................................................... 4
5.2 Public benefit activities .............................................................................................. 4
5.3 Carries on.................................................................................................................. 5
5.4 Provides funds........................................................................................................... 6
5.5 Solely ........................................................................................................................ 8
6. Application and administration of the skills development levy exemption....... 10
7. Conclusion ............................................................................................................. 11
Annexure A – Public benefit activities listed in Part I for purposes of the approval as a public
benefit organisation................................................................................................. 12
Annexure B – Qualifying public benefit activities for purposes of the skills development levy
exemption................................................................................................................ 17
Preamble
In this Note unless the context indicates otherwise –
• “Commissioner” means the Commissioner for the South African Revenue
Service appointed under section 6 of the South African Revenue Service Act 34
of 1997, or the “Acting Commissioner” designated under section 7 of that Act
as defined in section 1(1);
• “Part I” means Part I of the Ninth Schedule;
• “PBA” means any public benefit activity listed in Part I and any other activity
determined by the Minister by notice in the Government Gazette to be of a
benevolent nature, having regard to the needs, interests and well-being of the
general public as defined in section 30(1);
• “PBO” means an organisation falling within the definition of “public benefit
organisation” in section 30(1) and approved by the Commissioner under
section 30(3);
• “qualifying PBAs” means the PBAs qualifying for purposes of the exemption
of the payment of SDL in paragraphs 1, 2(a), (b), (c), (d) and 5 in Part I;
• “Schedule” means a schedule to the Act;
• “SDL” means the skills development levy referred to in section 3 of the
SDL Act, paid by an employer;
• “SDL Act” means the Skills Development Levies Act 9 of 1999;
• “section” means a section of the Act;
• “TA Act” means the Tax Administration Act 28 of 2011;
• “the Act” means the Income Tax Act 58 of 1962; and
• any other word or expression bears the meaning ascribed to it in the Act or the
SDL Act.
All guides and interpretation notes referred to in this Note are available on the SARS
documents should be consulted.
1. Purpose
This Note provides guidance on the interpretation and application of section 4(c) of the
SDL Act,1 which exempts any PBO 2 contemplated in section 10(1)(cN) 3 from the
payment of SDL, provided the PBO solely –
• carries on qualifying PBAs; 4 or
• provides funds to PBOs solely carrying on qualifying PBAs. 5
2. Background
The Commissioner is responsible for the administration of the SDL Act in so far as it
relates to the collection of SDL payable to the Commissioner by employers. 6
The SDL Act 7 imposes on every employer 8 an SDL on the total amount of
remuneration paid or payable or deemed to be paid or payable by an employer to its
1 For commentary on the basic fundamentals of the SDL Act, see the Guide for Employers in respect
of the Skills Development Levy – External Guide.
2 For commentary, see the Tax Exemption Guide for Public Benefit Organisations in South Africa.
3 Section 10(1)(cN) exempts the receipts and accruals of an organisation approved as a PBO.
4 Section 4(c)(i) of the SDL Act.
5 Section 4(c)(ii) of the SDL Act.
6 For commentary, see the Guide for Tax Rates / Duties / Levies and Taxation in South Africa.
7 Section 3(1) of that Act.
8 The term “employer” is defined in section 1(1) of the SDL Act to include an “employer” as defined
in the Fourth Schedule. The Act defines “employer” in paragraph 1 of the Fourth Schedule as any
person who pays or is liable to pay to any person any amount by way of remuneration, and any
employees 9 during any month. 10 The amount of such remuneration is the same as the
amount of remuneration determined under the Fourth Schedule from which an
employer is obligated to withhold employees’ tax 11 taking into consideration certain
exclusions 12 in the SDL Act.
The SDL is not payable, 13 amongst other things, by any PBO contemplated in
section 10(1)(cN), which solely – 14
• carries on any qualifying PBAs; or
• provides funds to PBOs solely carrying on the qualifying PBAs.
An employer liable to pay SDL must apply in such manner as the Commissioner may
determine to be registered as an employer for the purposes of SDL. 15 Even an
employer, that is a PBO, which is exempt from the payment of SDL must register 16
with the Commissioner. 17
This Note considers only the exemption of the payment of SDL by any PBO meeting
the requirements of section 4(c) of the SDL Act.
3. The law
Section 4(c) of the Skills Development Levies Act
4. Exemptions.—The levy is not payable by—
(c) any public benefit organisation contemplated in section 10(1)(cN) of the Income
Tax Act, which—
(i) solely carries on any public benefit activity contemplated in paragraphs 1,
2(a), (b), (c) and (d) and 5 of Part I of the Ninth Schedule to that Act; or
person responsible for the payment of any amount by way of remuneration to any person under the
provisions of any law or out of public funds (including the funds of any provincial council or any
administration or undertaking of the State) or out of funds voted by Parliament or a provincial
council. The reference to “any person” has listed exclusions.
9 The term “employee” is defined in section 1(1) of the SDL Act and includes an “employee” as
defined in the Fourth Schedule. The term “employee” as defined in paragraph 1 of the Fourth
Schedule means (a) any person (other than a company) who receives any remuneration or to whom
any remuneration accrues, (b) any person who receives any remuneration or to whom any
remuneration accrues by reason of any services rendered by such person to or on behalf of a labour
broker, (c) any labour broker; (d) any person or class or category of person whom the Minister of
Finance by notice in the Gazette declares to be an employee for the purposes of this definition, or
(e) any personal service provider.
10 The term “month” as defined in paragraph 1 of the Fourth Schedule means any of the twelve
portions into which any calendar year is divided.
11 Section 3(3) of the SDL Act. The term “employees’ tax” as defined in paragraph 1 of the Fourth
Schedule means the tax required to be deducted or withheld by an employer under paragraph 2
from remuneration paid or payable to an employee. For commentary, see the Guide for Employers
in respect of Employees’ Tax - External Guide.
12 Section 3(4) of the SDL Act.
13 Section 4 of the SDL Act contains a number of exemptions from the payment of SDL.
14 Section 4(c) of the SDL Act.
15 Section 5(1) of the SDL Act. For commentary, see the External Guide – Guide for Employers in
Respect of Skills Development Levy SDL-GEN-01-G01.
16 See above.
17 Section 5(6) of the SDL Act.
(ii) solely provides funds to public benefit organisations contemplated in
subparagraph (i);
4. Application of the law
4.1 Public benefit organisation carrying on qualifying public benefit activities
An organisation claiming exemption from the payment of SDL under section 4(c)(i) of
the SDL Act, must be a PBO that solely (see 5.5) carries on (see 5.3) any qualifying
PBAs (see 5.2 and Annexure B).
4.2 Public benefit organisation providing funds
An organisation claiming exemption from the payment of SDL under section 4(c)(ii) of
the SDL Act, must be a PBO that solely (see 5.5) provides funds (see 5.4) to other
PBOs solely carrying on (see 5.3) any qualifying PBAs (see 5.2 and Annexure B).
5. General meaning of certain terminology in the context of section 4(c) of the
Skills Development Levies Act
5.1 Public benefit organisation
A PBO is an organisation that –
• carries on one or more PBAs in Part I (see 5.2 and Annexure A);
• complies with the prescribed requirements 18 of section 30; and
• is approved by the Commissioner under section 30(3).
Section 10(1)(cN) exempts a PBO from normal tax 19 on certain of its receipts and
accruals. 20
5.2 Public benefit activities
The term “public benefit activity” as defined in section 30(1) means –
“(a) any activity listed in Part I of the Ninth Schedule; and
(b) any other activity determined by the Minister from time to time by notice in the
Gazette to be of a benevolent nature, having regard to the needs, interests and
well-being of the general public”.
Part I comprises 11 categories, 21 each containing a list of specific activities qualifying
as PBAs for the approval of an organisation as a PBO. See Annexure A for a detailed
description of the PBAs listed under each category.
18 The formal conditions and requirements set out in section 30(3)(b), which an organisation must
comply with to qualify for, and retain approval as a PBO.
19 The term “normal tax” as defined in section 1(1) means income tax referred to in section 5(1).
20 For commentary, see Interpretation Note 24 “Income Tax: Public Benefit Organisations: Partial
Taxation”.
21 Categories include Welfare and Humanitarian (paragraph 1), Health Care (paragraph 2), Land and
Housing (paragraph 3), Education and Development (paragraph 4), Religion, Belief or Philosophy
(paragraph 5), Cultural (paragraph 6), Conservation, Environment and Animal Welfare
(paragraph 7), Research and Consumer Rights (paragraph 8), Sport (paragraph 9), Providing of
Funds, Assets or Other Resources (paragraph 10) and General (paragraph 11).
For purposes of the exemption from the payment of SDL, the qualifying PBAs are
limited to the following three categories in Part I:
• Welfare and Humanitarian (paragraph 1).
• Health Care (paragraph 2) which is limited to PBAs 2(a), 2(b), 2(c) and 2(d).
• Religion, Belief or Philosophy (paragraph 5).
See Annexure B for a detailed description of the PBAs listed under each of the above
qualifying categories.
5.3 Carries on
The expression “carries on” is not defined in the SDL Act, and should, therefore, be
interpreted according to its ordinary meaning as applied to the subject matter relating
to which it is used 22 unless the ordinary meaning creates an absurdity or ambiguity.
It is important when giving words and expressions their ordinary meaning, to consider
the context in which such words or expressions are used.
The Cambridge Dictionary describes the expression “carry on” as – 23
“to continue to do or be involved with something”.
The expression “carries on”, in this context, means that the PBO must itself conduct
the PBAs by expending its funds in carrying on the qualifying PBAs. Whether a PBO
“carries on” the relevant PBA is a question of fact and must be decided considering
the facts of a particular case.
22 EA Kellaway, E. A. (1995). Principles of Legal Interpretation of Statutes, Contracts and Wills at
page 224. Butterworths Durban. Also, see Natal Joint Municipality Pension Fund v Endumeni
Municipality 2012 (4) SA 593 (SCA).
23 https://dictionary.cambridge.org/dictionary/english/carry-on [Accessed 27 August 2025].
Example 1 – Carrying on qualifying public benefit activities
Facts:
ABC Haven NPC provides accommodation and care to neglected and abandoned
children. A social worker, house parents and other essential staff employed by the
home are responsible for the basic needs and care of these children. ABC Haven NPC
has submitted an application for approval as a PBO.
ABC Haven NPC complies with the requirements of section 30 and will be approved
by the Commissioner as a PBO because its sole or principal object is to carry on
PBA 1(a) in Part I (see Annexure A under the category “Welfare and Humanitarian”).
Result:
ABC Haven NPC will also qualify for the exemption from the payment of SDL
contemplated in section 4(c)(i) of the SDL Act, because it is solely carrying on a
qualifying PBA (see Annexure B under the category “Welfare and Humanitarian”).
5.4 Provides funds
An organisation providing funds to other organisations may be referred to as a
“conduit” 24 organisation. A “conduit” organisation does not itself carry on PBAs, but
merely passes its funds on to other organisations, which carry on the PBAs.
Paragraph 10 in Part I deals with a PBO that is a “conduit” (see Annexure A under the
category “Providing of Funds, Assets or Other Resources”). A “conduit” organisation
may for purposes of the approval as a PBO provide funds, assets, services or other
resources to any –
• PBO (see 5.1);
• institution, board or body contemplated in section 10(1)(cA)(i) conducting one
or more PBA in Part I (excluding PBA 10); 25
• association of persons carrying on one or more PBA contemplated in Part I
(excluding PBA 10), in South Africa; 26 or
• department of state or administration in the national, provincial or local sphere
of government of South Africa contemplated in section 10(1)(a). 27
The exemption from the payment of SDL under section 4(c)(ii) of the SDL Act, applies
only to a “conduit” PBO (see 4.2) that solely (see 5.5) provides funds to PBOs (see 5.1)
solely carrying on (see 5.3) qualifying PBAs (see 5.2).
24 The Oxford Learner’s Dictionaries available online at www.oxfordlearnersdictionaries.com/
us/definition/english/conduit [Accessed 27 August 2025] describes “conduit” as “a person, an
organization or a country that is used to pass things or information to other people or places”.
25 For commentary, see the Tax Exemption Guide for Institutions, Boards or Bodies.
26 For commentary, see Interpretation Note 98 “The Provision of Funds, Assets or Other Resources
to any Association of Persons”.
27 For commentary, see the Guide to Section 18A Approval for a Department in the National,
Provincial or Local Sphere of Government.
A “conduit” PBO providing funds to PBOs as well as to any other entity, namely, an
institution, board or body, association of persons, or a department in the national,
provincial or local sphere of government (non-qualifying entities) will not qualify for the
exemption from the payment of SDL under section 4(c)(ii) of the SDL Act since the
“conduit” PBO is not providing funds solely to PBOs.
Example 2 – Provision of funds to a public benefit organisation as well as to non-
qualifying entities
Facts:
XYZ Trust was established with the object of raising funds and accepting donations
from the public and corporate entities for the benefit of the following:
• Glory for All, a PBO carrying on PBA 5(a) in Part .
• Community leaders of a rural community in a remote village to fund the cost of
the installation of pipes and a water pump to ensure accessible water for
community members. The community leaders are regarded as the “association
of persons” referred to in PBA 10(iii) in Part I.
• PEN University, an institution, board or body contemplated in
section 10(1)(cA)(i) carrying on PBA 4(b) in Part I.
XYZ Trust complies with the prescribed requirements of section 30 and will be
approved by the Commissioner as a “conduit” PBO because its sole or principal object
is to carry on PBA 10 in Part I (see Annexure A under the category “Providing of
Funds, Assets or Other Resources”).
Result:
XYZ Trust provides funds to –
• a PBO carrying on a qualifying PBA (see Annexure B under the category
“Religion, Belief of Philosophy”);
• an association of persons, a non-qualifying entity, carrying on a non-qualifying
PBA for purposes of the SDL exemption (see Annexure A under the category
”Provision of Funds, Assets or Other Resources);
• an institution, board or body, a non-qualifying entity. carrying on a non-
qualifying PBA for purposes of the SDL exemption (see Annexure A under the
category “Education and Development”).
XYZ Trust does not qualify for the exemption from the payment of SDL contemplated
in section 4(c)(ii) of the SDL Act, because it does not provide funds (see 5.4) solely
(see 5.5) to PBOs (see 5.1) but also to non-qualify entities.
The provision of assets, services or other resources contemplated in PBA 10 is
excluded for the purposes of the SDL exemption (see Annexure A).
Example 3 – Provision of funds to a public benefit organisation solely carrying
on a qualifying public benefit activity
Facts:
ABC Haven Trust was established with the sole object of raising funds and accepting
donations from the public and corporate entities solely for the benefit of
ABC Haven NPC, a PBO, solely engaged in the care of neglected and abandoned
children (see Example 1).
ABC Haven Trust complies with the prescribed requirements of section 30 and will be
approved by the Commissioner as a “conduit” PBO carrying on PBA 10 in Part I
(see Annexure A under the category “Provision of Funds, Assets or Other
Resources”).
Result:
ABC Haven Trust qualifies for the exemption from the payment of SDL contemplated
in section 4(c)(ii) of the SDL Act, because it solely provides funds to ABC Haven NPC,
a PBO, that solely carries on a qualifying PBA, namely, PBA 1(a) in Part I
(see Annexure B under the category “Welfare and Humanitarian”).
5.5 Solely
The word “solely” is not defined in the SDL Act. The word “solely” is described in the
Cambridge Dictionary as follows: 28
“only and not involving anyone or anything else.”
The Dictionary.com describes “solely” as follows: 29
“as the only one or ones; exclusively or only.”
The word “solely”, in this context, means that a PBO (see 5.1) must exclusively carry
on (see 5.3) the qualifying PBAs (see 5.2), or exclusively provide funds (see 5.4) to
PBOs (see 5.1) that exclusively carry on the qualifying PBAs, to qualify for the
exemption from the payment of SDL. The requirement of “solely” is absolute and the
Commissioner has no discretion to allow any exception, no matter how insignificant.
A PBO carrying on more than one PBA, some of which are qualifying PBAs (see 5.2
and Annexure B) as well as other PBAs not listed in section 4(c)(i) of the SDL Act
(see Annexure A), will not qualify for the exemption from the payment of SDL under
section 4(c)(i) of the SDL Act.
28 https://dictionary.cambridge.org/dictionary/english/solely [Accessed 27 August 2025].
29 www.dictionary.com/browse/solely [Accessed 27 August 2025].
Example 4 – A public benefit organisation carrying on qualifying and non-qualify
public benefit activities
Facts:
DEF Religious Centre provides church services every Sunday to its congregation.
DEF Religious Centre also provides daily early childhood development services to pre-
school children of the general public. The centre employs a principal, teachers,
assistants as well as other essential staff to provide the early childhood development
services on its premises. DEF Religious Centre has submitted an application for
approval as a PBO.
DEF Religious Centre complies with the requirements of section 30 and will be
approved by the Commissioner as a PBO because its principal object is to carry on
PBAs 4(h) and 5(a) in Part I (see Annexure A under the categories “Education and
Development” and “Religion, Belief or Philosophy”).
Result:
DEF Religious Centre is carrying on a non-qualifying PBA, namely, PBA 4(h) in Part I,
and a qualifying PBA, namely, PBA 5(a) in Part I (see Annexure B under the category
“Religion, Belief or Philosophy”) therefore it will not qualify for the exemption from the
payment of SDL contemplated in section 4(c)(i) of the SDL Act, because it is not solely
carrying on qualifying PBAs.
Similarly, a “conduit” PBO providing funds to PBOs carrying on one or more PBAs,
some of which are qualifying PBAs as well as other non- qualifying PBAs for purposes
of SDL as listed in section 4(c)(i) of the SDL Act, will not qualify for the exemption from
the payment of SDL under section 4(c)(ii) of the SDL Act.
Example 5 – Provision of funds to public benefit organisations carrying on
qualifying as well other non-qualifying public benefit activities
Facts:
HUF Trust was established with the object of raising funds and accepting donations
from the public and corporate entities for the benefit of the following PBOs:
• Health 4 All established to provide healthcare services at no charge to poor
and needy persons contemplated in PBA 2(a) in Part I.
• Unlocking Potential established to provide training for unemployed persons to
enable them to obtain employment contemplated in PBA 4(e) in Part I.
• For the Love of Fur Babies established to care, prevent the ill-treatment and
rehabilitation of animals contemplated in PBA 7(a) in Part I.
HUF Trust complies with the prescribed requirements of section 30 and will be
approved by the Commissioner as a “conduit” PBO because its sole or principal object
is to carry on PBA 10 in Part I (see Annexure A under the category “Providing of
Funds, Assets or Other Resources”).
Result:
HUF Trust provides funds by way of donation to PBOs carrying on –
• PBA 2(a) in Part I, which is a qualifying PBA for purposes of the SDL exemption
(see Annexure B under the category “Health Care”); and
• PBAs 4(e) and 7(a) in Part I, which are non-qualifying PBAs for purposes of the
SDL exemption.
HUF Trust, therefore, does not qualify for the exemption from the payment of SDL
contemplated in section 4(c)(ii) of the SDL Act, because it does not provide funds
(see 5.4) solely (see 5.5) to PBOs (see 5.1) that solely (see 5.5) carry on (see 5.3)
qualifying PBAs (see 5.2).
6. Application and administration of the skills development levy exemption
The Commissioner will inform an organisation applying 30 for PBO approval whether it
has been approved as a PBO. The notification of approval as a PBO is issued by the
Commissioner by letter. The notification will also confirm whether the PBO qualifies for
the exemption from the payment of SDL under section 4(c) of the SDL Act. The SDL
will, therefore, not be payable from the date of confirmation of the PBO approval by
the Commissioner.
The approval by the Commissioner of an organisation as a PBO is generally effective
from the date of the notice of approval, that is, it is prospective, unless it is granted with
retrospective effect. 31 Any amount of SDL, interest or penalty paid by an employer
approved as a PBO retrospectively, which was, when applying the retrospective
approval, not leviable or payable under section 4(c) of the SDL Act must be refunded
to the employer within a prescribed period. The Commissioner, however, may refuse
to authorise a refund, 32 if the employer has failed to submit a return together with
payment of the SDL 33 until the employer has submitted such return. 34 A request for a
refund must be submitted to the SARS Service Centre. Each request for an SDL refund
will be considered on its own merits and specific facts.
If at any time subsequent to the notification issued by the Commissioner confirming
exemption from the payment of SDL, the PBO no longer solely (see 5.5) carries on
(see 5.3) the qualifying PBAs (see 5.2) or no longer provides funds (see 5.4) solely
(see 5.5) to other PBOs (see 5.1) solely carrying on the qualifying PBAs, the PBO will
no longer qualify for the exemption of the payment of SDL under section 4(c) of the
SDL Act.
30 An organisation seeking approval as a PBO must complete and submit to SARS the prescribed
application form EI 1 together with the required supplementary information and supporting
documentation. Information on how to apply for approval as a PBO is available on the SARS
website.
31 Section 30(3B). For commentary, see the Tax Exemption Guide for Public Benefit Organisations in
South Africa.
32 Section 190 of the TA Act.
33 Section 6(2) of the SDL Act.
34 Section 6(6) of the SDL Act.
An organisation whose approval as a PBO is withdrawn by the Commissioner due to
non-compliance with the provisions of section 30 will also no longer qualify for the
exemption from the payment of SDL under section 4(c) of the SDL Act. 35
The Commissioner will notify the PBO of the withdrawal of the PBO approval by letter.
An organisation not qualifying for exemption from the payment of SDL under
section 4(c) of the SDL Act is liable to pay the SDL to SARS within seven days after
the end of the month or such longer period as the Commissioner determines. 36 A
10% 37 penalty will be imposed on an unpaid amount of SDL. 38
7. Conclusion
An organisation approved by the Commissioner as a PBO is not automatically exempt
from the payment of SDL under the SDL Act. The exemption from the payment of SDL
under section 4(c) of the SDL Act will apply only if the requirements of that section are
met.
The obligation will be on the PBO to prove that it meets the strict requirements of
section 4(c) of the SDL Act.
Leveraged Legal Products
SOUTH AFRICAN REVENUE SERVICE
35 For commentary on the circumstances in which the PBO approval may be withdrawn and the
consequences of such withdrawal, see the Tax Exemption Guide for Public Benefit Organisations
in South Africa
36 Section 6 of the SDL Act.
37 Chapter 15 of the TA Act.
38 Section 12(1) of the SDL Act.
Annexure A – Public benefit activities listed in Part I for purposes of the approval as a
public benefit organisation
NINTH SCHEDULE
PUBLIC BENEFIT ACTIVITIES
(Section 30)
PART I
WELFARE AND HUMANITARIAN
1. (a) The care or counseling of, or the provision of education programmes relating to,
abandoned, abused, neglected, orphaned or homeless children.
(b) The care or counseling of poor and needy persons where more than 90 per cent of those
persons to whom the care or counseling are provided are over the age of 60.
(c) The care or counseling of, or the provision of education programmes relating to,
physically or mentally abused and traumatized persons.
(d) The provision of disaster relief.
(e) The rescue or care of persons in distress.
(f) The provision of poverty relief.
(g) Rehabilitative care or counseling or education of prisoners, former prisoners and
convicted offenders and persons awaiting trial.
(h) The rehabilitation, care or counseling of persons addicted to a dependence-forming
substance or the provision of preventative and education programmes regarding
addiction to dependence-forming substances.
(i) Conflict resolution, the promotion of reconciliation, mutual respect and tolerance
between the various peoples of South Africa.
(j) The promotion or advocacy of human rights and democracy.
(k) The protection of the safety of the general public.
(l) The promotion or protection of family stability.
(m) The provision of legal services for poor and needy persons.
(n) The provision of facilities for the protection and care of children under school-going age
of poor and needy parents.
(o) The promotion or protection of the rights and interests of, and the care of, asylum
seekers and refugees.
(p) Community development for poor and needy persons and anti-poverty initiatives,
including—
(i) the promotion of community-based projects relating to self-help, empowerment,
capacity building, skills development or anti-poverty;
(ii) the provision of training, support or assistance to community-based projects
contemplated in item (i); or
(iii) the provision of training, support or assistance to emerging micro enterprises to
improve capacity to start and manage businesses, which may include the granting
of loans on such conditions as may be prescribed by the Minister by way of
regulation.
(q) The promotion of access to media and a free press.
HEALTH CARE
2. (a) The provision of health care services to poor and needy persons.
(b) The care or counseling of terminally ill persons or persons with a severe physical or
mental disability, and the counseling of their families in this regard.
(c) The prevention of HIV infection, the provision of preventative and education
programmes relating to HIV/AIDS.
(d) The care, counseling or treatment of persons afflicted with HIV/AIDS, including the care
or counseling of their families and dependants in this regard.
(e) The provision of blood transfusion, organ donor or similar services.
(f) The provision of primary health care education, sex education or family planning.
LAND AND HOUSING
3. (a) The development, construction, upgrading, conversion or procurement of housing units
for the benefit of persons whose monthly household income is equal to or less than
R15 000 or any greater amount determined by the Minister of Finance by notice in the
Gazette after consultation with the Minister of Housing.
(b) The development, servicing, upgrading or procurement of stands, or the provision of
building materials, for purposes of the activities contemplated in subparagraph (a).
(c) The provision of residential care for retired persons, where—
(i) more than 90 per cent of the persons to whom the residential care is provided are
over the age of 60 and nursing services are provided by the organisation carrying
on such activity; and
(ii) residential care for retired persons who are poor and needy is actively provided
by that organisation without full recovery of cost.
(d) Building and equipping of—
(i) clinics or crèches; or
(ii) community centres, sport facilities or other facilities of a similar nature,
for the benefit of the poor and needy.
(e) The promotion, facilitation and support of access to land and use of land, housing and
infrastructural development for promoting official land reform programmes.
(f) Granting of loans for purposes of subparagraph (a) or (b), and the provision of security
or guarantees in respect of such loans, subject to such conditions as may be prescribed
by the Minister by way of regulation.
(g) The protection, enforcement or improvement of the rights of poor and needy tenants,
labour tenants or occupiers, to use or occupy land or housing.
(h) The provision of training, support or assistance to emerging farmers in order to improve
capacity to start and manage agricultural operations.
EDUCATION AND DEVELOPMENT
4. (a) The provision of education by a “school” as defined in the South African Schools Act,
1996, (Act No. 84 of 1996).
(b) The provision of “higher education” by a “higher education institution” as defined in terms
of the Higher Education Act, 1997, (Act No. 101 of 1997).
(c) “Adult education”, as envisaged in section 29(1)(a) of the Constitution, including literacy
and numeracy education.
(d) “Continuing education and training” provided by a “private college” as defined in the
Continuing Education and Training Colleges Act, 2006 (Act No. 16 of 2006), which is
registered in terms of that Act.
(e) Training for unemployed persons with the purpose of enabling them to obtain
employment.
(f) The training or education of persons with a severe physical or mental disability.
(g) The provision of bridging courses to enable educationally disadvantaged persons to
enter a higher education institution as envisaged in subparagraph (b).
(h) The provision of educare or early childhood development services for pre-school
children.
(i) Training of persons employed in the national, provincial and local spheres of
government, for purposes of capacity building in those spheres of government.
(j) The provision of school buildings or equipment for public schools and educational
institutions engaged in public benefit activities contemplated in subparagraphs (a) to (h).
(k) Career guidance and counseling services provided to persons attending any school or
higher education institution as envisaged in subparagraphs (a) and (b).
(l) The provision of hostel accommodation to students of a public benefit organisation
contemplated in section 30 or an institution, board or body contemplated in
section 10(1)(cA)(i), carrying on activities envisaged in subparagraphs (a) to (g).
(m) Programmes addressing needs in education provision, learning, teaching, training,
curriculum support, governance, whole school development, safety and security at
schools, pre-schools or educational institutions as envisaged in subparagraphs (a) to
(h).
(n) Educational enrichment, academic support, supplementary tuition or outreach
programmes for the poor and needy.
(o) The provision of scholarships, bursaries, awards and loans for study, research and
teaching on such conditions as may be prescribed by the Minister by way of regulation
in the Gazette.
(p) The provision or promotion of educational programmes with respect to financial services
and products, carried on under the auspices of a public entity listed under Schedule 3A
of the Public Finance Management Act.
(q) The provision, to the general public, of education and training programmes and courses
that are administered and accredited by entities contemplated in paragraph (r).
(r) The administration, provision and publication of qualification and certification services
by industry organisations recognised by an industry specific organisation and its
qualifications accredited by the Quality Council for Trades and Occupations established
in 2010 in terms of the Skills Development Act, 1998 (Act No. 97 of 1998).
RELIGION, BELIEF OR PHILOSOPHY
5. (a) The promotion or practice of religion which encompasses acts of worship, witness,
teaching and community service based on a belief in a deity.
(b) The promotion and/or practice of a belief.
(c) The promotion of, or engaging in, philosophical activities.
CULTURAL
6. (a) The advancement, promotion or preservation of the arts, culture or customs.
(b) The promotion, establishment, protection, preservation or maintenance of areas,
collections or buildings of historical or cultural interest, national monuments, national
heritage sites, museums, including art galleries, archives and libraries.
(c) The provision of youth leadership or development programmes.
CONSERVATION, ENVIRONMENT AND ANIMAL WELFARE
7. (a) Engaging in the conservation, rehabilitation or protection of the natural environment,
including flora, fauna or the biosphere.
(b) The care of animals, including the rehabilitation, or prevention of the ill-treatment of
animals.
(c) The promotion of, and education and training programmes relating to, environmental
awareness, greening, clean-up or sustainable development projects.
(d) The establishment and management of a transfrontier area, involving two or more
countries, which—
(i) is or will fall under a unified or coordinated system of management without
compromising national sovereignty; and
(ii) has been established with the explicit purpose of supporting the conservation of
biological diversity, job creation, free movement of animals and tourists across the
international boundaries within the peace park, and the building of peace and
understanding between the nations concerned.
RESEARCH AND CONSUMER RIGHTS
8. (a) Research including agricultural, economic, educational, industrial, medical, political,
social, scientific and technological research.
(b) The protection and promotion of consumer rights and the improvement of control and
quality with regard to products or services.
SPORT
9. The administration, development, co-ordination or promotion of sport or recreation in which the
participants take part on a non-professional basis as a pastime.
PROVIDING OF FUNDS, ASSETS OR OTHER RESOURCES
10. The provision of—
(a) funds, assets, services or other resources by way of donation;
(b) assets or other resources by way of sale for a consideration not exceeding the direct
cost to the organisation providing the assets or resources;
(c) funds by way of loan at no charge; or
(d) assets by way of lease for an annual consideration not exceeding the direct cost to the
organisation providing the asset divided by the total useful life of the asset,
to any—
(i) public benefit organisation which has been approved in terms of section 30;
(ii) institution, board or body contemplated in section 10(1)(cA)(i), which conducts one or
more public benefit activities in this part (other than this paragraph);
(iii) association of persons carrying on one or more public benefit activity contemplated in
this part (other than this paragraph), in the Republic; or
(iv) department of state or administration in the national or provincial or local sphere of
government of the Republic, contemplated in section 10(1)(a).
GENERAL
11. (a) The provision of support services to, or promotion of the common interests of public
benefit organisations contemplated in section 30 or institutions, boards or bodies
contemplated in section 10(1)(cA)(i), which conduct one or more public benefit activities
contemplated in this part.
(b) The bid to host or hosting of any international event approved by the Minister for
purposes of this paragraph, having regard to—
(i) the foreign participation in that event; and
(ii) the economic impact that event may have on the country as a whole.
(c) The promotion, monitoring or reporting of development assistance for the poor and
needy.
(d) The provision of funds to an organisation—
(i) which is incorporated, formed or established in any country other than the
Republic;
(ii) which is exempt from tax on income in that other country;
(iii) the sole or principal object of which is the carrying on of one or more activities that
would qualify as public benefit activities listed in Part I of this Schedule if carried
on in the Republic; and
(iv) that carries on each of its activities—
(aa) in a non-profit manner;
(bb) with altruistic or philanthropic intent;
(cc) in a manner which does not directly or indirectly promote the economic self-
interest of any fiduciary or employee of the organisation other than by way
of reasonable remuneration; and
(dd) for the benefit of, or is widely accessible to the general public of that country
including any sector thereof (other than small and exclusive groups).
Annexure B – Qualifying public benefit activities for purposes of the skills
development levy exemption
Paragraph 1 in Part I
NINTH SCHEDULE
PUBLIC BENEFIT ACTIVITIES
(Section 30)
PART I
WELFARE AND HUMANITARIAN
1. (a) The care or counseling of, or the provision of education programmes relating to,
abandoned, abused, neglected, orphaned or homeless children.
(b) The care or counseling of poor and needy persons where more than 90 per cent of those
persons to whom the care or counseling are provided are over the age of 60.
(c) The care or counseling of, or the provision of education programmes relating to,
physically or mentally abused and traumatized persons.
(d) The provision of disaster relief.
(e) The rescue or care of persons in distress.
(f) The provision of poverty relief.
(g) Rehabilitative care or counseling or education of prisoners, former prisoners and
convicted offenders and persons awaiting trial.
(h) The rehabilitation, care or counseling of persons addicted to a dependence-forming
substance or the provision of preventative and education programmes regarding
addiction to dependence-forming substances.
(i) Conflict resolution, the promotion of reconciliation, mutual respect and tolerance
between the various peoples of South Africa.
(j) The promotion or advocacy of human rights and democracy.
(k) The protection of the safety of the general public.
(l) The promotion or protection of family stability.
(m) The provision of legal services for poor and needy persons.
(n) The provision of facilities for the protection and care of children under school-going age
of poor and needy parents.
(o) The promotion or protection of the rights and interests of, and the care of, asylum
seekers and refugees.
(p) Community development for poor and needy persons and anti-poverty initiatives,
including—
(i) the promotion of community-based projects relating to self-help, empowerment,
capacity building, skills development or anti-poverty;
(ii) the provision of training, support or assistance to community-based projects
contemplated in item (i); or
(iii) the provision of training, support or assistance to emerging micro enterprises to
improve capacity to start and manage businesses, which may include the granting
of loans on such conditions as may be prescribed by the Minister by way of
regulation.
(q) The promotion of access to media and a free press.
Paragraph 2 in Part I
HEALTH CARE
2. (a) The provision of health care services to poor and needy persons.
(b) The care or counseling of terminally ill persons or persons with a severe physical or
mental disability, and the counseling of their families in this regard.
(c) The prevention of HIV infection, the provision of preventative and education
programmes relating to HIV/AIDS.
(d) The care, counseling or treatment of persons afflicted with HIV/AIDS, including the care
or counseling of their families and dependants in this regard.
Paragraph 5 of Part I
RELIGION, BELIEF OR PHILOSOPHY
5. (a) The promotion or practice of religion which encompasses acts of worship, witness,
teaching and community service based on a belief in a deity.
(b) The promotion and/or practice of a belief.
(c) The promotion of, or engaging in, philosophical activities.
Diamond Export Levy Act, 2007
