Is your organisation eligible for Maori authority status?: Marae

Tax implications for marae

For tax purposes, most marae will be regarded as Maori authorities and will need to file an IR8 income tax return.

However, some marae can opt to be taxed under the general tax rules, as a trust (IR6 return) or a non-profit body (IR9 return).

You must file a tax return at the end of each tax year.

Income tax exemption

From 1 April 2003 (or equivalent balance date) any organisation that administers a marae situated on a Maori reservation may qualify for an income tax exemption as a charity, as long as it uses its funds for these purposes only:

• to administer and maintain the marae's physical structure and land, or
• for charitable purposes.

From 1 July 2008 the marae will need to be registered by the Charities Commission to qualify for an exemption from income tax.

The exemption is for the organisation which is responsible for the marae, not for the marae itself. Typically this organisation will be one of the following:

• an incorporated society under the Incorporated Societies Act 1908
• an unincorporated body of persons such as a marae committee
• trustees of a trust under a Maori reservation
• a corporate body under a Maori reservation

As long as the organisation administers a marae that's situated on a Maori reservation, it will be eligible for the exemption. If the marae is not situated on a Maori reservation, the organisation will need to apply for an income tax exemption as a charity. There's more about this in our Charitable organisations (IR255) booklet.

Charitable income tax exemption and blood ties

Previously if membership of an organisation was open only to people with certain blood ties, the organisation was automatically prevented from becoming a charitable organisation and/or donee organisation for income tax purposes. This requirement no longer applies from 1 April 2003 (or equivalent balance date), as long as the organisation meets the other criteria for the tax status it is seeking.

This change applies to all New Zealand organisations, but it's likely to be most relevant to Maori organisations which specifically define their membership by reference to whakapapa to a named person.

From 1 July 2008 a Maori authority will need to be registered by the Charities Commission to be exempt from income tax.

For detailed information regarding charitable or donee organisations, please see "Not for profit groups" on the menu at the top of this page.

Date published: 11 Apr 2006

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