Notice Board - News

Charities required to register for tax exemptions

Charities Commission,

After 1 July 2008, organisations must be registered with the Charities Commission to remain eligible for the exemption from resident withholding tax (RWT) that Inland Revenue (IRD) allows for organisations that have a charitable purpose.

• If your charity currently has an IRD certificate of exemption from RWT because IRD have already accepted that you have a charitable purpose, you don’t need to get a new certificate if you are on the Charities Register.
• If your charity doesn’t have a certificate, you must apply to IRD for a certificate of exemption using their form IR451.
• At some point after 1 July 2008, IRD will review and may cancel certificates of exemption from RWT for organisations that IRD had accepted as charitable prior to 1 July 2008, but that are not registered with the Charities Commission.

Organisations that are not charitable, but are non-profit, may nonetheless be eligible for tax exemptions. Some non-profit bodies, which don't meet the Charities Act criteria, can claim an income tax deduction from Inland Revenue of up to $1,000 per year. These organisations include: associations established for community purposes that do not hold charitable organisation status, trade associations, social clubs, and sporting clubs that do not come within the tax exemption for amateur sporting bodies.

For more information visit http://www.ird.govt.nz/yoursituation-nfp or call Inland Revenue on 0800 377 774.

Contact person	Charities Commission
Postal address
Phone
Email	info@charities.govt.nz
Website address	http://www.charities.govt.nz
Submitted by	Ns