Useful Information

Index
Incorporated or not?

Income tax exempt or not?

Donee organization?

Income tax for individuals

Tool for business

Choosing the right software
 

Incorporated or not?

If you are not incorporated, then every member of your committee/club/business is personally liable.

To incorporate your charity click here http://www.societies.govt.nz/cms/charitable-trusts/starting-a-trust-board

To incorporate your society click here http://www.societies.govt.nz/cms/incorporated-societies/starting-an-incorporated-society

To incorporate your business click here https://companies-register.companiesoffice.govt.nz/help-centre/starting-a-company/incorporating-a-company/


Income tax exempt or not?

Tax exempt certificates are no longer applicable, just because you have one no longer means you are tax exempt.  To become exempt from income tax you must register with charities services.  Click here to find out more https://www.charities.govt.nz/apply-for-registration/considering-registering-as-a-charity/benefits-and-obligations-of-being-registered/

If you do not register then your charity/society will be liable for income tax.  Click here to find out more about the tax rates http://www.ird.govt.nz/non-profit/np-gst/income-tax/

Note – if you register, then you will have reporting obligations. Click here to find out more https://www.charities.govt.nz/new-reporting-standards/


Donee organization?

When a person makes a donation to a donee organisation, generally they can claim a tax credit (formerly rebate) for that donation. Companies (including certain societies) and Maori authorities can also claim a deduction for donations they make to these organisations.

If you register with the charities services, they should request donee status as part of the application process.

If you are not registered with charities services, and you want to have donee status, then you will need to contact ird.  Click here to find out more http://www.ird.govt.nz/donee-organisations/


Income tax for individuals

Unless you have requested a different income tax month, your income tax will be from 1 April to 31 March.  Personal tax summaries (PTS) usually become available about May if you would like to request one, but you will automatically be sent one in July if you meet certain conditions.  Read here for more information http://www.ird.govt.nz/income-tax-individual/end-year/pts/

If you have any income not taxed, or want to claim a deduction you will need to file an IR3 (do not request a PTS if this is the case).  Click here for more information http://www.ird.govt.nz/income-tax-individual/end-year/ir3/

IR3 is due 7 July, unless you have a tax agent, or an extension of time.

If you have tax to pay, it will be due 7 February the following year.

If you request a PTS and it is a refund, then you should automatically be sent the refund soon afterwards.  Similarly if you file an IR3 and it is a refund, you should receive it after submitting your IR3.


Budgeting tool

Useful link to a visual budget template https://sorted.org.nz/tool/budgeting-tool#/welcome


Tool for business

Useful link to all the basic information you need to know if you are a business owner http://www.ird.govt.nz/tool-for-business/?id=201405MegaMenu


Choosing the right software

Click on link for some considerations (cost, usability, features) https://www.businessnewsdaily.com/7542-choosing-accounting-software.html

Popular small business software

–          MYOB https://www.myob.com/nz/accounting-software/compare

–          Xero https://www.xero.com/nz/pricing/