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New Zealand law explained for everyone

Income Tax Act 2007

Tax credits and other credits - Tax credits for gifts and donations

LD 8: Meaning and ranking of payroll donation

You could also call this:

“How payroll donations work and when you can make them”

A payroll donation is when you ask your employer to give some of your pay to a charity. This only works if your employer offers payroll giving to their employees.

You can only make a payroll donation after you’ve paid any taxes you owe and met any other legal requirements from your pay. This means you need to take care of these important things first before giving money to charity through your payroll.

Your employer will take the amount you want to donate out of your pay and send it directly to the charity you choose. This happens for each pay period that you decide to make a donation.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2781418.

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Part L Tax credits and other credits
Tax credits for gifts and donations

LD 8Meaning and ranking of payroll donation

  1. A payroll donation, for a pay period and employer who agrees to offer payroll giving to their employees, is an amount that a person asks their employer to transfer from the amount of the person's pay for the period to a donee organisation.

  2. A person may make a payroll donation for a pay period only after satisfying—

  3. any tax obligation they may have:
    1. any statutory or legal requirement they may be obliged to meet from their PAYE income payment.

      Notes
      • Section LD 8: added, on , by section 323 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
      • Section LD 8 list of defined terms ask: inserted, on , by section 74 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).