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Find out about: Tax rates and codes

Non-profit organisations

A non-profit organisation is any society, association or organisation that:

  • is not carried on for the profit or gain of any member, and
  • has rules that do not allow money, property or any other benefits to be distributed to any of its members.

How does a non-profit organisation work?

They may be:

  • incorporated - these organisations are registered with the Ministry of Economic Development - Business and Registries Branch. See Related websites >, or
  • unincorporated.

Non-profit organisations can have profit-making activities taxed as business income in the normal way.

What are the tax rates for non-profit organisations?

If the organisation has profit-making activities, it must have written rules that meet certain criteria to get an income tax exemption (see below).

Non-profit organisations that are registered and incorporated under the Incorporated Societies Act 1908 are taxed at the company tax rate (currently 30 cents in the dollar).

Unincorporated organisations are taxed at the same rate as individuals.

You can find the income tax rates for all years since 1998 by using the Income tax rate calculator in Work it out > The calculator can also work out tax on taxable income for you.

What are the income tax exemptions?

A deduction of up to $1,000 per year is available for some non-profit organisations. By deducting this amount from the organisation's net income you reduce the amount of tax to pay.

Income tax exemptions are not automatic. You will need to apply to us in writing. See Contact us > for our address details.

Please include the following information about your organisation:

  • IRD number - if you do not have one, you will need to apply. Please complete an IRD number application - non-individual (IR596) - see Forms and guides >
  • a copy of its rules, constitution, trust deed or other founding documents - preferably in draft (before being finalised) form
  • a copy of its certificate of incorporation (if applicable)
  • a letter stating the type(s) of exemption being requested, eg sports club
  • details of how it has been or will be operating.

 

 


Date published: 03 Dec 2007

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