Donation Tax Credit Guide — Charitable Donations Rebate in NZ
the donation tax credit (the charitable donations rebate) in New Zealand. The guide covers the 33.33% rebate on the charitable donations, the eligible donee organisations, the minimum donation amounts, and how to claim the donations through the annual tax return.
Donation Tax Credit (33.33%)
The donation tax credit provides a rebate of 33.33% (one-third) of the charitable donations made by the individual taxpayers. The minimum donation for the credit is $5 per donation, and the total claimed donations must be at least $5 for the year. The maximum rebate is capped at the total amount of the tax paid for the year (the rebate cannot exceed the tax liability). The donations must be made to the "approved donee organisations" registered with the Charities Services or listed in the schedule to the Income Tax Act 2007.
How to Claim
The donations can be claimed through the annual tax return (the IR3 or the PTS). The taxpayer must keep the receipts showing: (a) the name and the IRD number of the donee organisation, (b) the amount and the date of the donation, and (c) the receipt number. The receipts must be submitted with the tax return (or retained for the IRD audit). The married couples and the civil union partners can claim the donations made by either partner. The donations made through the workplace giving programmes are deductible at the source (the PAYE).