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Income Tax Act 2007

Income - Exempt income

CW 49: Bodies promoting scientific or industrial research

You could also call this:

“Tax exemption for approved scientific or industrial research groups”

If you’re part of a group that mainly works to promote or encourage scientific or industrial research, you might not have to pay tax on some of the money you receive. This is called exempt income. For this to apply, your group needs to meet two important conditions:

  1. The Royal Society of New Zealand must approve your group.
  2. None of the money your group receives can be used for personal financial gain by any member, owner, shareholder, or anyone connected to them.

It’s important to know that this rule doesn’t apply to Crown Research Institutes. They have different rules they need to follow.

If you want to learn more about other parts of the tax law, you can look at section CW 41 of the Income Tax Act 1986.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513285.

Topics:
Money and consumer rights > Taxes
Business > Industry rules
Education and learning > Research
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Part C Income
Exempt income

CW 49Bodies promoting scientific or industrial research

  1. An amount of income derived by a society or association established mainly to promote or encourage scientific or industrial research is exempt income if—

  2. the society or association is approved by the Royal Society of New Zealand; and
    1. none of its funds is used or available to be used for the private pecuniary profit of a member, proprietor, shareholder, or associate of any of them.

      1. This section does not apply to a Crown Research Institute.

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