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Not-for-profits have income tax exemptions or deductions – this means they may not have to pay income tax or file returns. Whether you have an exemption or deduction depends on what kind of organisation you are, what kind of income you have, and how you use it.

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.

Tax exemptions for charities 

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.

Pay less tax with a not-for-profit income deduction


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Last updated: 15 Nov 2022
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