Charities and not-for-profits
The Commissioner has published several items on charities and not-for-profit entities. This overview sets out the Commissioner's public guidance for charities and not-for-profit bodies, organised by subject.
- General principles
- Meaning of charitable or other public benefit gift
- Business income exemption and donee status
- Payments made by parents to schools and childcare centres
- Fringe Benefit Tax
- Goods and Services Tax
- Depreciation
- Maori Trust Boards
- Case summaries.
The Commissioner issues different types of guidance items to cater for different customer needs. The different types of items are explained here.
Further information on charities and not-for-profits is available here.
General principles
| Title | Summary | Date issued |
|---|---|---|
|
Charities and donee organisations - Part 1 charities OS 22/04 Part 1 and Fact sheet |
This OS (and accompanying Fact sheet) outline the tax treatment and obligations that apply to charities and how the Commissioner will apply the relevant legislation. | 10 Oct 2022 |
|
Charities and donee organisations - Part 2 donee organisations OS 22/04 Part 2 and Fact sheet |
This OS (and accompanying Fact sheet) outline the tax treatment and obligations that apply to donee organisations and how the Commissioner will apply the relevant legislation. | 10 Oct 2022 |
Meaning of 'charitable or other public benefit gift'
| Title | Summary | Date issued |
|---|---|---|
|
Income tax - donee organisations and gifts QB 16/05 |
This QWBA provides guidance about when payments made to donee organisations by supporters are gifts for income tax purposes. | 23 Jun 2016 |
|
Income tax - Wholly or mainly applying funds to specified purposes in New Zealand IS 18/05 and Fact sheet |
This IS (and its accompanying Fact sheet) clarifies the requirement for a donee organisation to apply its funds 'wholly or mainly' to charitable, benevolent, philanthropic or cultural purposes within New Zealand. it also explains Inland Revenue's safe habour approach to administering this requirement. | 20 Sep 2018 |
|
Income tax - Establishing and maintaining a fund QB 19/10 |
This QWBA examines the requirements for establishing and maintaining a 'fund' under s LD 3(2)(c) of the ITA 2007 so that it qualifies as a donee organisation. | 13 Jun 2019 |
|
Income tax - Establishing and maintaining a public fund QB 22/02 and Fact sheet |
This QWBA (and accompanying Fact sheet) considers the requirements for establishing and maintaining a 'public fund' under s LD 3(2)(d) of the ITA 2007 so that it qualifies as a donee organisation. | 14 Apr 2022 |
Business income exemption and donee status
| Title | Summary | Date issued |
|---|---|---|
|
Charities business exemption - Business carried on in partnership QB 21/03 |
This QWBA considers whether income derived by a charitable entity from a business will be exempt under s CW 42 of the ITA 2007 if the business is carried on by a charitable entity in partnership with a non-charitable entity. | 7 May 2021 |
|
Charities - business income exemption IRRUIP17 |
This Issues paper discusses the interpretative and practical issues a charity may face when applying s CW 42 of the ITA 2007 to income it derives from a business carried out exclusively for charity. | 17 Feb 2023 |
|
Charities – business income exemption IS 24/08 and Fact sheet |
This IS considers what income is from a business and the extent to which business income derived by a charitable entity is exempt from tax under s CW 42. | 16 Sept 2024 |
Payments made by parents to schools and childcare centres
| Title | Summary | Date issued |
|---|---|---|
|
GST - Payments made by parents to state and state integrated schools BR Pub 23/08 |
This Ruling specifies when GST is not chargeable on payments made by parents to the board of trustees of a state or state integrated school.
Applies from 21 June 2023. |
12 Jun 2023 |
|
Income tax - State schools and donation tax credits QB 18/10 |
This QWBA explains when a parent’s payment to a State school will be a gift, so that the school can issue a donation tax receipt to the parent. | 21 Jun 2018 |
|
Income tax - State integrated schools and donation tax credits QB 18/11 |
This QWBA explains when a parent’s payment to a State integrated school will be a gift, so that the school can issue a donation tax receipt to the parent. | 21 Jun 2018 |
|
Income tax - Private schools and donation tax credits QB 22/09 and Fact sheet |
This QWBA (and accompanying Fact sheet) explains when a parent’s payment to their child's private school will qualify for a donation tax credit. | 27 Oct 2022 |
|
Income tax - Childcare centres and donation tax credits QB 23/03 and Fact sheet |
This QWBA (and accompanying Fact sheet) explains when a parent's payment to their child's childcare centre will qualify for a donation tax credit. | 31 Mar 2023 |
|
GST - Payments made by parents to private schools QB 22/08 and Fact sheet |
This QWBA (and accompanying Fact sheet) explains when a parent's payment to their child's private school will be subject to GST. | 27 Oct 2022 |
|
GST - Payments made by parents to childcare centres QB 23/04 and Fact sheet |
This QWBA (and accompanying Fact sheet) explains when a parent's payment to their child's childcare centre will be subject to GST. | 31 Mar 2023 |
Fringe Benefit Tax
| Title | Summary | Date issued |
|---|---|---|
|
Charitable and other donee organisations BR Pub 22/06 and Fact sheet |
This Ruling (and accompanying Fact sheet) consider when benefits provided by charitable organisations to their employees are excluded from being treated as fringe benefits. Applies from 1 July 2022. |
31 May 2022 |
Goods and Services Tax
| Title | Summary | Date issued |
|---|---|---|
|
IS 20/09 |
This IS provides guidance on the meaning of 'unconditional gift' for GST purposes. | 23 Dec 2020 |
|
GST - Payments made by parents to state and state integrated schools BR Pub 23/08 |
This Ruling specifies when GST is not chargeable on payments made by parents to the board of trustees of a state or state integrated school. Applies from 21 June 2023. |
12 Jun 2023 |
|
GST - Payments made by parents to private schools QB 22/08 and Fact sheet |
This QWBA (and accompanying Fact sheet) explains when a parent's payment to their child's private school will be subject to GST. | 27 Oct 2022 |
|
GST - Payments made by parents to childcare centres QB 23/04 and Fact sheet |
This QWBA (and accompanying Fact sheet) explains when a parent's payment to their child's childcare centre will be subject to GST. | 31 Mar 2023 |
Depreciation
| Title | Summary | Date issued |
|---|---|---|
|
Depreciation - change of use event QB 19/02 |
This QWBA considers whether depreciation recovery income arises when a business becomes a charity and begins deriving exempt income. | 2 Apr 2019 |
Maori Trust Boards
| Title | Summary | Date issued |
|---|---|---|
|
Maori Trust Boards: Declaration of trust for charitable purposes BR Pub 08/02 |
This Ruling examines the income tax consequences of property held in a trust established by a Maori Trust Board. Applies from 2008/09 tax year. |
31 Jul 2018 |
Case summaries
| Title | Summary | Date issued |
|---|---|---|
|
Payments made in support of overseas mission services Case summary 20/04 |
The Court of Appeal decided that payments made to a New Zealand church in support of their overseas mission services qualified for donation tax credits. | 5 Jun 2020 |