Tax Digital Revolution - how to use the SARS online application system for tax exempt institutions

The South African Revenue Service has launched a new online application system for Income Tax Exempt Institutions.

Since 2 March 2026, SARS has made it easy: qualifying entities can apply for an income tax exemption via e-filing or at any SARS branch office nationwide.

This new system allows entities seeking income tax exemption to both register for Income Tax and apply for the exemption at any SARS branch or through e-filing.

To apply for an exemption, an institution must first be registered for Income Tax. The organisation’s registered representative or tax practitioner can complete the registration . Valid bank account details in the entity’s name are mandatory for the application.

Make a note, here’s your checklist

When applying for an Income Tax Exemption, the following supporting documents must be submitted:

• Founding Document.
• Proof of registration with CIPC, Master of the High Court, or Department of Social Development (for NPOs)
• Stamped bank confirmation letter or recent bank statements not older than three months
• Certified ID copies of all directors/members
• Proof of address for the organisation/entity not older than three months.
• Proof of address for the registered representative not older than three months.
• Financial statements (if the entity has operated for 12 months or more).
• A resolution, signed by all directors, appointing the registered representative.

The new Income Tax Exemption platform on efiling offers several advantages:

• Fully online completion of the Income Tax Exemption application form.
• The Income Tax Exemption application form customizes itself to the Income Tax Exemption category the entity wants to apply for online submission of supporting documents.
• System-generated notifications throughout the application process, including outstanding requirements
• Access to all SARS correspondence sent through the e-filing profile