Apologies if I can't manage to address these in one place, been a long day.
On Thursday, July 2, 2015, Stefano Rivera <
stefanor@debian.org> wrote:
Hi Bernelle (2015.07.02_15:08:35_+0200)
> Registering as a company is best (not as a trust, for example).
I was assuming that, too. Probably an NPO.
> He explained the difference between sponsor and donation:
> Donation is gratuitous disposition, and taxed at 40% (I think, but it is
> taxed).
It seems the rate is 20%.
http://www.sars.gov.za/TaxTypes/DonationsTax/Pages/default.aspx
> Sponsor is like a transaction, where both parties receive benefit. This is
> counted as income, and taxed (the sponsor is taxed), but the amount of tax
> depends on the turnover of the company.
Right, so nobody will actually be donating to us. They'll be sponsoring.
There'll be no tax benefit for them, because we aren't a PBO, and we'll
have taxable income. Is that correct?
Correct.
However, they should be able to claim the sponsorship as a business
expense, which can offset tax for them. I think?
> *IF we can make sure that the local funds remain at an annual turnover of
> less than R1 million, then we qualify for registering as a Micro Business,
> which means we only have to pay around 3% tax [1]. *So, only manage the
> local sponsors in the local company, and use international sponsors to pay
> international costs (e.g. flights), as far as possible.
I think this is doable. IIRC we're looking at about half a million for
the venue, and the rest of the costs will be nowhere close to that.
But we need our budget to advance a bit, to tell that.
Is this something we need to be sure of, in advance? Or is it just
relevant to tax filing, the next year?
It sounds like it's only relevant for tax filing. Try to register for the one you're most likely to be, but if you're not, then it's just more paperwork, no trainsmash.
> The next steps would be to draft the founding documents, draw up a
> memorandum of agreement, register the company (at CIPC [2]), and then apply
> to SARS, the South African Revenue Service.
>
> He says this is all pretty straightforward, and there is no problem
> creating and then dissolving a company.
What's the timing on this? What are the costs associated, for us? Or
were they offering this pro bono?
Our trust, many years ago was two or three months, I think, but you never know with government agencies! So sooner rather than later, no later than mid September, to allow for DC15 stuff?
I didn't ask because I'm getting tired of asking for (unrelated) professional services for free. Our trust in 2011 cost R5000. Will see, will ask for a cost breakdown once we've got our act together.
> For what it's worth, PBO's qualify for tax-deductible donations for the
> sponsors [3], so that would be nice. But he is adamant we don't apply, and
Yeah, I think Debian could fit in the Research category of Section 30.
And we're a conference for Debian, held at a University.
But there are no Section 18A categories that our sponsorship would fit
within. It wouldn't grant a tax benefit to the sponsor.
I think I got this advice before, too. That PBO was out of our reach,
especially in our timeframe.
SR
--
Stefano Rivera
http://tumbleweed.org.za/
+1 415 683 3272
--
To UNSUBSCRIBE, email to debconf16-team-request@lists.debian.org
with a subject of "unsubscribe". Trouble? Contact listmaster@lists.debian.org
Archive: [🔎] 20150702163852.GA3062@bach.rivera.co.za" target="_blank">https://lists.debian.org/[🔎] 20150702163852.GA3062@bach.rivera.co.za