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IRD consultation charities and taxation

 

Inland Revenue (IRD) is consulting on potential changes to the way charities and tangata whenua, community and voluntary organisations and groups are taxed in New Zealand. The potential changes include introducing tax for ‘unrelated’ charity businesses. The consultation document is technical. For the key potential changes, this survey outlines them in plain English before asking your views. Key documents are:

Your feedback is crucial in ensuring that the voices of our hugely diverse tangata whenua, community and voluntary sector organisations are heard. This survey from Hui E! and Volunteering New Zealand aims to gather your thoughts on the key areas of the consultation and will be collated into feedback from the Community Constellation, a collaboration of community sector peak bodies that Hui E! coordinates.

This survey will close at 5pm on 24 March. Feedback can be sent through to IRD until 31 March.

Answer the survey

Seeking feedback on honorarium

Some volunteers are paid an honorarium as a token of appreciation for voluntary services or contributions. IRD is considering changes to honoraria taxation as part of this consultation.

  • Honorarium payments by organisations to volunteers are a “schedular payment” and taxed at a flat rate.
  • Reimbursement for expenses incurred by volunteers in undertaking voluntary activities will be treated as exempt income to the volunteer.

We’d love to hear from volunteers or organisations about volunteer honorarium payments any challenges experienced around these. Please email [email protected] if you are happy to discuss this.

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