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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

Fringe benefit tax

Charities and other approved donee organisations generally do not have to pay fringe benefit tax on goods and services they provide their employees while working for the charity. Other not-for-profits may also not have to pay fringe benefit tax in some cases.

Fringe benefit tax for charities

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.

Tax exemptions for other types of not-for-profits

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Last updated: 15 Nov 2022
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