Re: Company for DC16 - some research
On 07/02/2015 11:19 AM, Bernelle Verster wrote:
> Yes, it sounded like not for profit or for profit is not a big deal, or
> they don't care. It sounds like a company is a company is a company.
> Your annual returns say if you've made profit or not.
It's also a matter of trust with the community. A non-profit
organization means that we the organizers can't pay out the profits to
ourselves.
> The tax exempt is for people funding us, not us being taxed.
In the US it's both, tax-deduction for donors on donations and
tax-exemption for the organization on any profits it makes. I thought
that was the case in South Africa too:
http://www.gov.za/services/company-income-tax/approval-public-benefit-organisation
But, digging a little deeper, it appears that South Africa taxes
companies and PBOs based on *income* rather than profit?
http://www.sars.gov.za/TaxTypes/PT/Pages/default.aspx
And section 2.2.2, 2.5, 2.13.3:
http://www.sars.gov.za/AllDocs/OpsDocs/Guides/LAPD-Gen-G01%20-%20Taxation%20in%20South%20Africa%20-%20External%20Guide.pdf
Section 2.13.4 seems to indicate that PBOs are taxed on income exactly
the same as for-profit companies.
Allison
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