Income tax exemptions and deductions depend on the type of organisation. Generally charities and community housing organisations are exempt. Sports clubs and other types of not-for-profits might be able to apply for an exemption or deduction.
Charities
Registered charities are automatically exempt from income tax, but they may need to pay tax on business income if it’s not used in New Zealand.
Community housing providers
Registered community housing providers can apply not to pay income tax or file income tax returns.
Tax exemptions and donee status for community housing providers
Sports clubs and other not-for-profits
Other not-for-profits, including sports clubs, can apply for an income tax exemption if:
- they're set up for the public good and not for private benefit
- funds are not used for the private gain of anyone involved with the not-for-profit (for example, owners, shareholders, club members or trust beneficiaries).
Write to us to see if your not-for-profit can get an exemption.
Apply for a not-for-profit income tax exemption or deduction
Other options if you cannot get an exemption
If you cannot get a full exemption from income tax, you may be able to get a $1,000 deduction from your not-for-profit's income. This means you do not pay tax on the first $1,000 your not-for-profit earns each year.