Essential tax-saving tips for South Africans: act before February 28

While most people only think about tax returns in January or July, there's a legitimate savings opportunity available right now that often goes unused, largely because it's poorly understood.

Section 18A of the Income Tax Act allows taxpayers the opportunity to deduct qualifying donations to registered Public Benefit Organisations (PBOs) from their taxable income, up to a set limit. The provision has existed for years, yet many everyday taxpayers either forget about it or assume it only applies to high earners.

However, for those wanting to take advantage of this opportunity, what catches many people out is timing. Donations must be made before February 28, 2026, to qualify for a deduction in this tax year. A pledge made in or after March is not “late” – it simply shifts the benefit out by another year.

People tend to think of donations as an emotional decision, not a financial one. But Section 18A makes it possible to be generous and financially smart at the same time – as long as you give to an approved organisation and keep the right documentation.

Five things to know before the financial year ends                                                                                                               

You don’t need a high income to benefit.

Any taxpayer can claim a deduction of up to 10% of taxable income for donations made to approved organisations. Even modest contributions can influence your final tax calculation.

It can reduce what you owe Sars.

Section 18A contributions can be set off against your taxable income, which may reduce the tax you ultimately pay, provided the donation meets Sars’ requirements.

Not every organisation qualifies.

Only donations made to organisations approved under Section 18A are deductible. Always confirm an organisation’s status before giving.

The receipt is non-negotiable.

A valid Section 18A certificate is required to claim the deduction. Without it, Sars will not allow the tax benefit, regardless of when the donation was made.

Donations above the limit aren’t lost.

If your donation exceeds the annual deduction cap, the excess can be carried forward and claimed in the next or succeeding tax years, subject to the 10% limit.

With just weeks left in the financial year, this is one of the simplest tools available to people who want to be more intentional with their money. For approved organisations, these contributions provide the certainty needed to plan long-term work. 

* Govender is the head of individual fundraising at WWF South Africa.

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