myIR, payments and more
Your organisation may receive many different types of income, including:
- donations or koha
- raffle money
- trading profits, and
- proceeds from selling assets.
Some grants made to non-profit organisations can be an unconditional gift or donation, especially if given by charitable trusts.
Use the table below to find out what income is liable for:
- income tax (for organisations not entitled to an exemption), and
- GST (for those organisations that are registered for GST).
|Liable for income tax||Not liable for income tax||Liable for GST||Not liable for GST||Exempt from GST|
|Raffles or housie proceeds||**|
|Sale of donated goods or services|
|Sale of purchased goods|
|Sale of assets or equipment|
|Hall or equipment hire|
|Rent received (residential)|
|Rent received (commercial)|
|Penalty payments (fines)|
|Advertising or sponsorship|
|Interest or dividends|
* The tax treatment of koha depends on what it is. See our booklet Payments and gifts in the Mäori community (IR278).
** Liable in certain situations.
If your income is exempt from GST
If your income is "exempt from GST", it's different from income that's "not liable for GST". This is important when you're working out your claim for GST input tax credits on goods and services for your organisation.
Claiming input tax credits on expenses
If you're a GST-registered non-profit organisation you may claim input tax credits on expenses.
These tax credits can be claimed on expenses gained from income that's either:
- liable for, or
- not liable for GST.
Tax credits can't be claimed on expenses gained from income that's exempt from GST.
|If you're a GST registered non-profit organisation that receives income from...||then you're...|
|a government grant||liable for GST|
|trading activities||liable for GST|
|donations||not liable for GST|
|renting a residential property||exempt from GST|
As a non-profit organisation you may claim a GST input tax credit for all expenses, except those from receiving the rent, which is exempt from GST.