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If your not-for-profit does not have an income tax exemption, you will need to pay tax on certain types of income. (If you have an exemption like charities and some sports clubs do, you generally do not pay tax on any of your income.)

Learn the difference between exemptions and income deductions, and check which sort your not-for-profit has.

When your not-for-profit does not pay tax

Pay tax on these income types

If you do not have an exemption on these income types, you need to include them in your income tax return and pay tax on them. You can also claim the expenses of earning or getting these income types.

  • Trading activities
  • Admission fees or ticket prices
  • Sale of goods you purchased to sell
  • Hall or equipment hire
  • Rent received (residential and commercial) 
  • Penalty payments (fines)
  • Advertising or sponsorship
  • Interest or dividends
  • Gaming machines
  • Suspensory loans

Do not pay tax on these income types

You do not need to include these income types in your return or pay tax on them. This also means you cannot claim the costs of earning or getting them as expenses in your return.

  • Membership fees or subscriptions
  • Donations
  • Bequests
  • Unconditional gifts
  • Raffles or housie proceeds
  • Sale of assets or equipment (unless you’ve made money on the sale – see our depreciation calculator to work this out)
  • Insurance receipts

Generally, the following items are not taxable, although they may be in special circumstances.

  • Koha
  • Grants
  • Subsidies

Income tax on grants and subsidies 
Donations (koha)

Depreciation on your assets

Your not-for-profit’s assets can lose value over time. Learn how and when to claim depreciation loss in your income tax return.

Depreciation


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Last updated: 28 Apr 2021
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