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.
Charities Services maintains a register of charitable entities. Registration is voluntary, but if a charity wishes to be exempt from income tax it will need to register.
Charitable organisations are entitled to charities-related tax concessions when they are registered with Charities Services. Those concessions stop when they are removed from the Charities Register (deregistered). These rules clarify the tax liability for the charity and their donors when they are deregistered.
Community housing entities may be entitled to a tax exemption on their income and be granted donee status. This only applies to community housing entities that have been set up to provide housing or housing assistance for low income householders who may not otherwise be able to buy their own home.
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.
These guidelines outline Inland Revenue's requirements for non-resident charities to apply for and obtain exemption from income tax. We may approve exemption from income tax for a non-resident charity if they are unable to be registered with Charities Services under the Charities Act 2005.
You will need to read these guidelines if your organisation is requesting overseas donee status.