Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Deductions - Expenditure specific to certain entities

DV 8: Non-profit organisations

You could also call this:

“Tax reduction for non-profit organisations that don't distribute property to members”

If you are part of an organisation that doesn’t try to make money for its owners or members, and its rules say it can’t give property to its members, this law might apply to you. Your organisation can reduce its taxable income by up to $1,000. If your organisation would make less than $1,000 in a year, you can reduce your taxable income by that smaller amount instead.

This law adds to the general rules about what you can deduct from your taxes, but you still need to follow all the other tax rules too.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514157.

Topics:
Money and consumer rights > Taxes
Previous

DV 7: Carry forward of expenditure, or

“Allowing leftover superannuation fund expenses to be used in future years”

Next

DV 9: Trusts, or

“Rules for income and deductions in trusts for beneficiaries and trustees”

Part D Deductions
Expenditure specific to certain entities

DV 8Non-profit organisations

  1. This section applies when an incorporated or unincorporated organisation—

  2. does not have the purpose of making a profit for a proprietor, member, or shareholder; and
    1. has a constitution that prohibits a distribution of property in any form to a member, proprietor, or shareholder.

      1. The organisation is allowed a deduction for the lesser of—

      2. $1,000; and
        1. the amount that would be the organisation’s net income in the absence of this section.

          1. This section supplements the general permission. The general limitations still apply.

          Compare