Tax‑related benefits and obligations

Updated June 2026

Registered charities in New Zealand may qualify for tax benefits, but they must also meet their tax obligations.

For detailed tax rules, see Inland Revenue’s non‑profits guidance or the IR255 Guide – Charities and donee organisations on Inland Revenue’s website.

Working with Inland Revenue

Inland Revenue administers tax law and decides which tax obligations apply to your charity.

When an organisation is registered under the Charities Act 2005, Charities Services advises Inland Revenue for tax purposes. We also notify Inland Revenue if a charity is deregistered.

Most registered charities do not need to contact Inland Revenue when they are registered.

You should contact Inland Revenue if:

  • your charity has taxable income and may need to file an income tax return
  • you need to register for, or manage, other tax types such as GST or PAYE
  • your organisation’s details change.

Income tax exemptions

Most registered charities are exempt from income tax on income that relates to their charitable purposes in New Zealand.

Some income may still be taxable. This can include:

  • income from business activities that are not directly related to your charitable purpose
  • income earned overseas
  • income earned by a trading subsidiary rather than the charity itself. 

If you are unsure whether your charity has taxable income, contact charities.queries@ird.govt.nz.

Other tax obligations

Even if your charity is exempt from income tax, other tax obligations may still apply.

These can include:

  • GST, if your charity’s taxable supplies exceed the registration threshold
  • PAYE, if you employ staff or make schedular payments
  • fringe benefit tax, if you provide non‑cash benefits to employees
  • student loan or KiwiSaver deductions, where relevant. 

For more information, see Income tax for not‑for‑profits on Inland Revenue’s website.

Donee status

What donee status is

Donee status allows donors to claim a tax benefit for donations they make to your organisation. Inland Revenue grants donee status.

  • Individuals may claim a donation tax credit.
  • Companies and Māori authorities may claim a tax deduction.

Most registered charities in New Zealand that receive donations or koha qualify for donee status. Once Charities Services registers an organisation, Inland Revenue usually grants donee status automatically.

Some organisations approved by Inland Revenue before 1 April 2020 may still have donee status without being registered.

Overseas activities and donee status

If your charity spends money delivering its charitable purpose overseas, such as for disaster relief or international aid, Inland Revenue assesses your status under different rules.

See Inland Revenue’s guidance on overseas donee status for more information.