Tax and SARS knowledge base

Which tax return must an exempt institution file?

Which annual income-tax return must an approved tax-exempt institution file?

Last reviewed: 29 August 2026

Direct answer

An institution already approved by SARS as tax exempt must submit an IT12EI every year, even if it owes no tax or had no activity. For companies and other entities, SARS says the return is due within 12 months after the institution's financial year-end. An exempt trust files annually by the trust deadline announced in the Commissioner's notice.

An organisation that has applied for exemption but has not yet received an outcome should not file IT12EI. SARS says it should continue with the normal return applicable to its legal form until approval is granted.

What this means in practice

Exemption is not exemption from filing. The return allows SARS to test whether the institution stayed within the conditions of its approval. A nil position must still be supported, for example by bank statements showing no activity.

The return name is now important. Older records and advisers may refer to ITR14 or ITR12T based only on legal form. For an approved exempt institution, SARS's current guidance requires IT12EI. Check that the income-tax profile and exemption status are correctly linked before the deadline.

Step-by-step

Locate the SARS approval letter and confirm the approval date, category and conditions.
Confirm the legal form, financial year-end and registered representative on eFiling.
Reconcile bank accounts, donations, grants, trading income, investments and expenditure to the financial records.
Identify transactions that may fall outside the exemption or permitted trading limits.
Request and customise the IT12EI on eFiling.
Complete it from the approved financial information, attach requested supporting documents and submit by the correct deadline.
Save the return, submission receipt, assessment and any follow-up request.

Documents and records to keep

Founding document and amendments.
SARS approval letter and exemption reference.
Annual financial statements, ledgers and bank statements.
Donation, grant and trading-income schedules.
IT12EI, assessment and SARS correspondence.

Important limits and exceptions

Approval under Section 18A is an additional status and brings third-party data duties. It does not replace IT12EI. VAT, PAYE, UIF, SDL and other taxes also remain separate from income-tax exemption.

When to get tailored advice

Get help if eFiling offers the wrong return, the exemption is not reflected, the entity traded materially, funds benefited connected persons, or filings were missed for several years.