New Zealand: Consultation on taxation of charitable and not-for-profit organizations
Wide-ranging policy issues being considered
Inland Revenue released a consultation paper on the taxation of charitable and not-for-profit (NFP) organizations. The paper identifies wide-ranging policy issues for consideration, including:
- Scope of the charitable business income tax exemption
- Whether different treatment of “donor-controlled” charities would be appropriate
- Appropriate taxation for NFPs that are mutual associations
- Removal of specific exemptions for certain types of NFPs
- Need for exemption for benefits provided to employees carrying out a charity’s charitable purpose
- Effectiveness of the donation tax credit
Read a February 2025 report prepared by the KPMG member firm in New Zealand