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Charitable organisations
Nga whakahaere aroha
Charitable organisations are organisations (incorporated or not) that carry out charitable activities or exist exclusively for charitable purposes. They are exempt from income tax, and individuals or companies who donate property to the charity are given relief from gift duty. For an organisation's purposes to be charitable, its activities or aims must be for public purposes - the benefit must be available to a large part of the community. In addition, it must not be carried on for the benefit or profit of any individual.

From 1 July 2008 a charitable organisation will need to be registered by the Charities Commission to enjoy the above tax exemptions.
Administrative guidelines about the tax position for charities that have not completed the process of registering with the Charities Commission by 1 July 2008

These administrative guidelines are intended to provide clarity about the tax position for entities that have not completed the process of registering with the Charities Commission by 1 July 2008.

Income tax, tax rates and exemptions

Charitable organisations are liable for income tax if they operate with no written rules, constitution or trust deed or they operate under a set of rules, a constitution or a trust deed that does not meet the requirements for income tax exemption or they use business income for charitable purposes outside New Zealand. Learn about rates of income tax, when to file returns and possible exemptions.

Charitable organisations for the purposes of Student Loan Scheme 1992

If you're an approved charitable organisation, and a student loan borrower is or will be working overseas for you as a volunteer (or for a token payment), they can apply to us for an exemption to keep their entitlement to an interest-free student loan.

Registration of charities

The Charities Commission will maintain a register of charitable entities. Registration is voluntary, but in future if a charity wishes to be exempt from income tax and donors of gifts exempt from gift duty it will need to register. The register will open on 1 February 2007.

Filing income tax returns

If your charitable organisation is assessed as being fully exempt from income tax, you don't need to file an income tax return unless we request one. However, you still need to keep accurate records for the organisation.

 

 


Date published: 23 Nov 2004

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