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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. 

Charities
Community housing providers

Not-for-profits that promote a town or region in New Zealand are exempt from tax.

Your not-for-profit's income is exempt if it is established mainly to:

  • advertise, beautify, or develop a city or other district to attract more people to the area (including population, tourists, trade or visitors) 
  • create, develop, or increase public facilities in a city or other district.

Your charity is not exempt if it uses funds for non-charitable purposes.

The exemption does not apply to income raised:

  • by a council-controlled organisation
  • by a local authority from a council-controlled organisation. 

If friendly societies are registered with the Companies Office, their income is exempt. 

However, they will still have to pay tax on income from:

  • doing business with non-members
  • registered insurance companies.

Interest and dividend income from a trust’s funeral fund is exempt if it exists only to pay the funeral-related expenses of employees and their immediate family members. (Spouses, partners and children.) 

The employer must have at least 10 employees who are equally entitled to benefits from the fund.

The exemption does not apply if contributions are made by anyone other than the employer or their employees.

We must approve the fund. 

To get approval, email us at [email protected]

Or write to us at:

Inland Revenue
PO Box 39010
Wellington Mail Centre
Lower Hutt 5045

Income earned by any of the following is exempt from tax.

  • TAB NZ
  • New Zealand Thoroughbred Racing
  • Harness Racing New Zealand
  • the New Zealand Greyhound Racing Association (Incorporated)
  • the Racing Integrity Board
  • Racing New Zealand.

Proceeds from gaming-machine gambling is exempt income if:

  • you have a gaming-machine operator’s licence and a gaming-machine venue licence
  • you comply with the Gambling Act 2003 in applying and distributing the net gambling proceeds from the gaming-machine gambling.

Income earned by organisations that mainly promote or encourage scientific or industrial research is exempt if both of the following apply.

  • The organisation is approved by the Royal Society of New Zealand.
  • None of its funds are used for the private profit of anyone associated with the organisation, or their associates.

This does not apply to a Crown Research Institute.

Veterinary club

Income earned by a veterinary association, club or society is exempt if both of the following apply.

  • The association, club or society was created mostly to promote efficient veterinary services in New Zealand.
  • None of its funds are used for the private profit of anyone associated with the organisation, or their associates.

Veterinary Council

Income earned by the Veterinary Council of New Zealand is exempt.

Income earned by a herd improvement association or society is exempt if both of the following apply.

  • It was created mostly to improve the standard of dairy cattle in New Zealand.
  • None of its funds are used for the private profit of anyone associated with the organisation, or their associates.

Income earned by a community trust is exempt income.


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Last updated: 15 Nov 2022
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