Is it compulsory for an art 21 company - now a non-profit company to register for tax and apply for exemption? The company operates as a homeowners association.
Important:
This answer is based on tax law for the year ending 28 February 2020.
Answer:
In terms of SARS’s current practice generally prevailing, “the qualifying associations of persons referred to in section 10(1)(e)(i)(cc) (for example, home owners’ associations) are required to apply for exemption to the SARS Tax Exemption Unit in order to qualify for exemption from income tax under section 10(1)(e).”
This requires registration. The home owners’ association will, even where it is a non-profit company, have to submit an IT12EI.