{"id":201900,"date":"2021-01-20T17:49:56","date_gmt":"2021-01-20T04:49:56","guid":{"rendered":"https:\/\/legalvision.co.nz\/?p=201900"},"modified":"2023-12-08T13:52:11","modified_gmt":"2023-12-08T00:52:11","slug":"does-my-business-get-tax-exemption-if-works-for-charity","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/business-structures\/does-my-business-get-tax-exemption-if-works-for-charity\/","title":{"rendered":"Does My Business Get a Tax Exemption if it Works For a Charity?"},"content":{"rendered":"\n

In New Zealand, if a charity is registered with Charities Services, then it is eligible for an income tax exemption on business profits. This used to apply to business profits of entities that carried out work for the benefit of a charity. However, from the 2020-2021 tax year onwards, the law surrounding this area has changed. If your business works for a charity, it needs to be registered as a charitable entity to be eligible for a tax exemption on your income. This article will explain what a charitable entity is and how this may apply to your business.<\/span><\/p>\n\n\n\n

What is a Charity?<\/span><\/h2>\n\n\n\n

Many community groups operate as not for profit organisations in New Zealand, without needing to apply for formal registration. However,<\/span> registered charities<\/span><\/a> gain certain tax exemptions on their business activities and have the right to call themselves a registered charity. These are typically:<\/span><\/p>\n\n\n\n