A change to the tax law that came into effect on 1 July 2008 says that a charity must be a “tax charity” to be eligible for tax exemptions on charitable grounds.

The key way to be a “tax charity” is to be registered with us (under the Charities Act).

While we decide if an organisation qualifies for registration as a charity, Inland Revenue will continue to administer charitable tax exemptions. These include exemptions from income tax and exemptions from gift duty for people who give gifts to charitable entities. Generally, Inland Revenue accepts the Commission’s decision so that registration will, in most cases, lead to tax exemption.

Many charities registered with us, previously had charitable tax exemptions and had letters from Inland Revenue confirming their tax exemptions on charitable grounds. Because those letters pre-date the change to the tax law, they are no longer relevant.