Some community housing providers can get an income tax exemption and donee status. This means that like registered charities, they do not need to pay income tax or file income tax returns.
People can also claim a tax credit (refund) on money they donate to the provider.
Who can get an exemption
To qualify for an exemption and donee status, your provider:
- must be registered as a community housing provider through the Community Housing Regulatory Authority
- can only be a trust or a company
- must provide housing or housing assistance
- must not carry out activities for any personal gain or profit.
Also, no one with control over the provider’s activities can benefit or get money from these.
Clients' income limits
Your provider must also make sure that most of its clients have income below certain limits. Any housing or housing assistance it provides must be the same, or very similar, for clients with income below or above the limit – it cannot provide better housing for those with more money.
How profits can be used
To qualify, the provider must keep all profits. Or, if profits are passed on to another person or organisation, they can only go to:
- the provider’s beneficiaries or clients
- another community housing provider that has this exemption
- another tax charity
- organisations entitled to receive charitable donations.