New Zealand: Consultation on taxation of charitable and not-for-profit organizations

Wide-ranging policy issues being considered

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February 27, 2025

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

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