TAX CHANGES FOR CHARITABLE GIVING
changes, effective from the 2008/09 income year, include:
removal of the $1,890 rebate threshold on donations made by individuals
removal of the 5% deduction limit on donations made by companies and Maori
company deduction for the donations will be extended to include unlisted
companies with five or fewer shareholders |
changes recognise the significant contribution made by the charitable and
non-profit sectors to the well-being of our communities, and foster a stronger
culture of charitable giving in
$1,890 threshold for which individuals can claim a tax rebate for cash
donations to donee organisations will be removed |
will be able to claim a 33 1/3 % tax rebate for donations, up to a maximum
claim equal to their annual taxable income. |
donates $3,000 to various charities and other non-profit organisations,
including her local church. Her taxable income for the 2009 year (
the past Indira could only claim a maximum of $630. With the removal of the
threshold Indira will now receive $1,000, a gain of $370.
Indira to claim her rebate she will need to complete the Rebate
claim form (IR526). Indira will need to include her receipts from the
approved charitable organisations with her rebate claim form.
5% limit on deductions that companies can claim for cash donations to donee
organisations will be removed
will be entitled to a deduction for donations made to donee organisations,
limited only by the amount of the company's net income
donation deduction is also being extended to unlisted close companies
(companies with five or fewer shareholders)
Ltd is a publicly-listed company. In the 2009 tax year (
the current law, Company Ltd is entitled to a tax deduction of $10,000.
the new rules, the full $20,000 can be deducted. The tax deduction will be
included in the company's income tax return (IR4).
5% deduction limit for cash donations to donee organisations and Maori
associations will be removed
authorities will be entitled to a deduction for donations made to donee
organisations, limited only by the amount of their net income
change will operate in exactly the same way as the change to the company
deduction and the donation deduction will be included in the Maori authority's
income tax return (IR8).
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