There are many types of disbursements in the Māori community such as grants, donations or koha, subsidies, honararium payments and Māori authority distributions.
Not all income is liable for income tax and not all goods and services attract GST. It’s important to understand when income tax and GST should be paid, and when you should deduct PAYE if you employ staff. Find out more information on the tax treatment of koha and other payments here.
Donations and koha for businesses
If you would like to speak with someone about giving or receiving koha, our Kaitakawaenga Māori can help.
An Auckland kōhanga reo charges fees for children to attend. 1 of the parents gives the kōhanga reo food and other goods instead of paying fees for their child.
The value of the food and goods is taxable income.
That’s because this koha is not given voluntarily and the giver gets something in return for it.
Another parent, who has paid the fees for their child, gives the kōhanga reo a gift of vegetables from their garden. Kōhanga reo staff make use of the vegetables to provide lunches to the children.
The vegetables are a gift and not taxable income.
That’s because the vegetables were given voluntarily, did not benefit the giver, and give no income to the kōhanga reo.
A Tauranga waka ama group owns outrigger canoes which it rents commercially to the public.
The rent is taxable income.
That’s because the rental payments are not voluntary and the payers receive a benefit in return.
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