Some not-for-profits can get tax exemptions or deductions, which means they may not need to file or pay some taxes like income tax, resident withholding tax (RWT) or fringe benefit tax (FBT).
You need to apply for some of these exemptions or deductions. Others you can get automatically depending on what kind of organisation you are.
Income tax
Charities registered with Charities Services do not have to pay income tax. Other not-for-profits, for example sports clubs or community trusts, need to apply to us in writing.
When not-for-profits do not pay income tax
Resident withholding tax on interest and dividends
Not-for-profits can apply to us for an RWT exemption so they do not pay tax on interest or dividends, for example from banks. Registered charities automatically have exemptions.
When not-for-profits do not pay resident withholding tax
Other tax exemptions
Like charities and community housing providers, some other types of not-for-profits do not need to pay tax on some parts of their income – it is exempt. This depends on who they are and where the income comes from.