Cape Town, 20 May 2026 – South African Public Benefit Organisations (PBOs) approved under Section 18A of the Income Tax Act are reminded that SARS IT3(d) reporting obligations remain a critical compliance requirement for organisations issuing tax deductible donation receipts.

Any organisation that issued Section 18A receipts during the 2025-26 tax year must ensure that the required donor and receipt information is accurately captured and that an IT3(d) submission is made to the South African Revenue Service (SARS) by May 31, 2026. 

“We have observed that recent developments across the non-profit sector suggest that SARS is significantly increasing scrutiny of PBO compliance obligations, including IT12EI returns, Section 18A administration, and IT3(d) submissions. Certain PBOs have already received notices of non-compliance,” said Soraya Joonas, Finance Director at Inyathelo.

What is IT3(d) reporting?

IT3(d) is a third-party data submission process implemented by SARS to improve transparency and oversight of charitable tax deductions. It specifically applies to donations for which Section 18A receipts were issued. Similar to employer IRP5 submissions, IT3(d) submissions allow SARS to match taxpayer claims against receipts issued by PBOs.  Since the inception video with SARS on the initial introduction of SARS IT3(d) third-party reporting, certain requirements have now become mandatory.

Who must submit IT3(d)?

Non-profits that are Section18A approved are currently required to submit IT3(d) returns. If no Section 18A receipts have been issued in the period, SARS still requires the submission of a Null IT3(d) declaration and specifically notes that the Null declarations help to reduce the risk of fraudulent use of an organisation’s Section 18A details and false donor claims.

If the organisation is a registered PBO but does not have 18A approval, it is not yet obligated to comply with this reporting requirement.

What must be reported on Section 18A Certificates for 2025-26?

For each Section 18A receipt issued between 1 March 2025 and 28 February 2026, entities must include the following on 18A Certificates:

• Name of Approved Section 18A entity
• Reference number issued by SARS for Section 18A approval
• Date of Issue of Receipt
• Donor’s name, tax ID(optional) /ID or registration number(mandatory), and contact details
• Donation amount
• Receipt number
• Type of donation (cash, in-kind, etc.)Certification that the receipt was issued for purposes of Section 18A
• Confirmation that the donation would be used exclusively for approved Public Benefit Activities (PBA’s)

Please watch out for our next release on the requirements for future 2026-27 Section 18A certificates submissions.

When must IT3(d) be submitted?

The information for any receipt issued under Section 18A during the financial period from 1 March 2025 to 28 February 2026 must be captured and submitted.

SARS has introduced a biannual submission cycle for IT3(d), mirroring other third-party reporting:

• Interim Submission: For the 6 months ending 31 August (due 31 October)
• Annual Submission: Covering the full tax year (due in 31 May of the following year)

For the 2025/2026 period, the full year submission is due by 31 May 2026. 

Why does this matter?

This reporting is more than just red tape and serves to:

• Validate Tax Deductions: Confirm the legitimacy of donor tax claims 
• Promote Transparency: A step toward maintaining financial credibility post lifting of the greylisting on South Africa by the Financial Action Task Force (FATF) 
• Modernise Compliance: Part of SARS’ digital tax ecosystem. 
• Prevent Abuse: Minimises fraud and misuse of Section 18A receipts 

Joonas warned that failure to comply could jeopardise an entity’s PBO status or 18A approval and have an impact on donor relationships.

“In some instances, we understand that SARS is actively enforcing third-party cross-referencing processes, resulting in Section 18A donation claims being rejected on donor tax returns where the relevant PBO has not submitted its IT3(d) information in time.

This has broader implications for donor trust and confidence. Non-profits work hard to build credible and transparent relationships with donors, who are generally assured that a valid Section 18A certificate will support a legitimate tax deduction claim. So as non-profit PBO’s issuing 18A certificates, we must ensure that we are compliant and submitting our IT3(d) returns on time,” said Joonas.

How to prepare for this process

If they haven’t already, Non-profit leaders should:

• Verify their 18A approval with SARS.
• Set up systems to track receipt data from the point of issue.
• Coordinate with their software provider or IT team for compatible file formats if they issue more than 50 S18A receipts.
• Train staff on required donor data fields.
• Engage their accountant or tax advisor to validate readiness.
• Use the SARS Submission Channels: Use SARS e-Filing for manual report entries of less than 50 donation certificates or HTTPS for bulk uploads.
• Submit IT3(d) on or before May 31^st, 2026

NPOs are encouraged to remain up to date on the SARS IT3(d) submission requirements as published on the SARS website, IT3 Data Submission | South African Revenue Service.

While the expanded reporting and disclosure requirements are contributing to rising financial compliance costs across the non-profit sector, the IT3(d) framework also presents an opportunity to strengthen donor data management, improve transparency, enhance public trust, and align organisations with evolving regulatory and governance expectations,” said Joonas.

For further guidance, PBOs should consult their tax advisor and visit the SARS Third Party Data Submission micro learning videos:

• How to Activate the IT3 for IT3d form on efiling and
• How to Complete and Submit IT3d on efiling. 

Sources: SARS Website and AccountingWeekly.com

Disclaimer:

As the South African Institute for Advancement, Inyathelo is focussed on strengthening the NPO sector and building awareness around compliance issues.  This should not be considered as professional advice as Inyathelo is not a licensed tax or legal advisor. Tax laws and legal regulations are complex and subject to change, and their application can vary significantly based on individual circumstances.  Before making any financial, business, or other decisions based on the information provided, we strongly recommend that you consult with qualified tax professionals.